Synlait welcomes OIO approval for Bright Dairy

Synlait welcomes OIO approval for Bright Dairy investment

Synlait has welcomed the approval of the Overseas Investment Office (OIO) for the investment by Bright Dairy in Synlait Milk Limited.

Bright Dairy will form a partnership with Synlait Limited in the Canterbury dairy processing business of Synlait Milk. Bright Dairy’s investment of $82 million for 51 per cent of Synlait Milk will facilitate the completion of a second milk powder plant to begin operations in August 2011. The plant will produce value added products, such as infant formula and other high specification formulated milk powders, packaged for consumers in China and elsewhere.

Shanghai-based Bright Dairy is China’s largest supplier of value-added dairy products and has an established distribution network along China’s populous and increasingly wealthy eastern seaboard.

Synlait Milk Chief Executive Officer John Penno says the OIO approval completes the New Zealand regulatory process for Bright Dairy’s investment.

“This is a further step in attaining our strategic goal of becoming a leading supplier of specialised milk powder products to the Asian market, and growing into one of the larger milk processing businesses in New Zealand.”

ENDS

© Scoop Media