6th November 2020 By Paul Yandall | email@example.com | @foodtickernz
Synlait Milk says it has signed a new manufacturing supply deal with “an established, global category leader” but it has not named its new customer.
Under the agreement, Synlait said it would “manufacture, blend, and package nutrition products which include plant-based products”.
The dairy company’s chair, Graeme Milne, said Synlait had been working on the agreement for some time.
“It recognises our world-class technical and quality capabilities and utilises our integrated manufacturing chain,” Milne said.
“We are pleased to welcome this important multinational customer to Synlait’s network.”
The company would spend $70m over two years at its two Auckland processing plants to meet the new supply of nutrition products.
Synlait chief executive Leon Clement said it was “the start of a valuable, enduring, strategic partnership that gives us broader market and category exposure in Asia Pacific”.
“Asian markets are experiencing strong sector growth as consumers seek nutritional products that support better health. Synlait is excited to play a role in this journey.
“This is a significant step forward for us as we genuinely diversify our customer, category and geographic reach.”
Commercial production to meet the agreement’s new deal was projected to start in mid-2022 and it was expected to have a positive impact on earnings from FY23.
Synlait said further details of the agreement would not be disclosed due to confidentiality.
The company’s share price rose 6c to $5.11 yesterday afternoon following the announcement of the deal to the NZX.
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