(Yicai Global) June 1 – China's Bright Dairy & Food Co. recently announced a buyout of a dairy plant in Auckland, New Zealand, via its local subsidiary. Its subsidiary, Synlait Milk [NZX:SML; ASX:SM1], will acquire a full 100 percent stake in New Zealand Dairy Company (NZDC), as well as the land and buildings owned by the NZDC, said a statement from Synlait Milk.
Synlait Milk will pay NZD33.2 million (USD23.4 million) for the acquisition. The total investment in the new plant will reach NZD56.5 million once the planned investment is completed in October. The deal is expected to significantly boost the company's production capacity.
NZDC's planned production lines include a baby formula production, for which it has already obtained a license, the statement added. Synlait will register the new plant with New Zealand's ministry of primary industries and the Certification and Accreditation Administration of China (CNCA).
Chinese dairy companies stepped up acquisitions of foreign assets in recent years, in line with the growing domestic demand for imported infant formula products. Synlait Milk now ranks among the five largest independent dairy processors in New Zealand, and specializes in milk powder production and processing.