Qingdao based Synutra will make dairy products at a new factory in France: cheese for Europe, whey for China. The facility is to be purpose built for Synutra in the Brittany region at a proposed cost of 100 million euro. The move will allow Synutra to source their own imported whey for their baby formula that will be sold in China. NASDAQ listed Synutra was in the news in 2012 over suspected chemical alteration of baby formula, which the company denied (keep in mind that even without adulterants, some consider cow milk itself as unfit for humans). This will be the first overseas plant built by Synutra.
More info on Qingdao Dairy European Expansion:
Synutra International Inc. has been given approval from China’s commerce authorities to go ahead with a 100-million-euro (130 million U.S. dollars) investment project that will result in the construction of a milk factory in France.
The company, based in the city of Qingdao in east China’s Shandong Province, said Tuesday that construction will kick off in France’s western Brittany region in September.
Li Ke, general manager of Synutra, said the company expects the factory to start production in the first half of 2015.
As Synutra’s first overseas factory, it will supply cheese products to the European market and allow for whey powder to be shipped to China.
Li said Chinese baby formula producers largely depend on imports for whey powder, a crucial ingredient in making formula. Li said the factory will be built according to European standards and target the global dairy market.
Relevant Links:
Synutra Official Website (English)