Fonterra investing $70m in new electrode boilers
While opening the first electrode boiler at its Edendale site, Fonterra has announced a $70 million investment in two further new electrode boilers.
The joint venture has been formalised and subject to final regulatory approvals the first product destined for Beingmate's Chinese customers is expected to roll off the Darnum line in Victoria, Australia in the second half of 2016.
The joint venture sees Beingmate take a 51% stake in Australia's premier paediatric powder plant at Darnum, Fonterra retaining a 49% stake and controlling operations at the plant.
The Darnum joint venture is a key component of Fonterra's partnership with Beingmate to create an integrated global supply chain from the farmgate direct to China consumers, using Fonterra's milk pools and manufacturing sites in New Zealand, Australia and Europe.
Fonterra last year also paid out $755 million for a 18.8% stake in Shenzen-listed Beingmate Baby & Child Food.
Last August, Fonterra and Beingmate said they intended to form a global partnership to help meet China's growing demand for infant formula.
