Danish firm Arla makes progress in Chinese market

European dairy firm Arla Foods Amba has tied up with China’s baby food maker Biostime International to invest in adding production capacity for infant formula products, its second venture in China this month.

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.