Glanbia joins PZ Cussons in Nigeria venture

FOOD giant Glanbia is to build a $20 million plant in Nigeria in a joint venture with another international group, PZ Cussons.

The plant, which will further process powdered milk sourced primarily from Ireland, will supply evaporated milk and milk powder to the Nigerian market.

It will be capable of handling 35,000 tonnes of milk products per annum and will be commissioned in early 2005.

Initial investment will be funded equally by the parties. Glanbia will have full responsibility for operations while PZ Cussons plc will be responsible for the marketing and distribution of the product stream through its existing Nigerian subsidiary.

John Moloney, group managing director, Glanbia plc, said this project continues the implementation of the group’s growth strategy and offers a relatively low risk entry into a significant growth market.

“It also provides an opportunity to add value to our Irish milk processing operations by accessing new markets.

“We look forward to working closely with PZ Cussons who have 100 years of experience of operating in Nigeria and considerable marketing, sales and distribution capabilities throughout Africa and the Far East,” he said.

Nigel Green, chief executive, PZ Cussons plc, said they are delighted to have joined forces with Glanbia in this project and look forward to developing their relationship in the future to maximise market opportunities.

Glanbia plc, which had sales in 2002 of 2.3 billion, is an international cheese, nutritional ingredients and consumer foods company with operations in the USA, Ireland and Britain.

It is one of Europe’s largest dairy companies and one of the world’s largest cheese manufacturers. It is a global player in advanced technology dairy-based nutritional ingredients.

PZ Cussons plc is an international manufacturing group specialising in personal cleansing, and is probably best known for its brand, Imperial Leather.

In Nigeria, it manufactures a wide range of products, has a workforce of 6,000 people and a strong distribution network giving access to all regions of the country.

It also has a successful history of selling imported evaporated milk. Headquartered in Manchester, the group had sales of £466 million for its financial year that ended in May, 2003.