Danish firm Arla makes progress in Chinese market
The two parties have signed a 10-year agreement to co-invest 163m Danish crowns ($27.64m) to expand production capacity at Arinco, Arla’s largest infant formula production facility in Denmark, Biostime said.
The deal is aimed at securing yearly production of 20,000 tons of infant formula powders dedicated to Biostime by 2015.
Last week, Arla said it would buy a 6% stake in China Mengniu Dairy Co Ltd from private equity fund Hopu for 1.7bn Danish crowns as global dairy companies seek to position themselves as safe alternatives in China’s growing dairy sector. China’s milk industry has been attracting overseas companies as recent scandals of contaminated products has made consumers willing to pay a premium for a foreign brand.
