The contract, which is valid for 10 years, aims to guarantee sufficient production capacity for Biostime in Arinac. Arla Foods, a company specializing in the production of milk-based foods such as cheese and butter, has signed a cooperation agreement with the Chinese company Biostime, a producer of infant formula. This contract aims to guarantee sufficient production capacity for Biostime in Arinac, Arla’s largest facility dedicated to baby products in Denmark. With this contract, which will be valid for 10 years, they will co-invest a total of more than 21 million euros.
The agreement aims to guarantee an annual production volume of 20,000 tons of powdered infant formula. Arla also announced the purchase of 6% of the Chinese company Mengniu Dairy.
Vice President of Arla Foods’ B-to-B Nutrition business unit, Jens Jorgen Hjortshoj, stated that “we are delighted to sign this 10-year cooperation agreement with Biostime, as it will enable us to produce high-quality, value-added dairy products. that – emphasizes Hjortshoj – this strengthens our confidence in the long-term development of our infant formula in China.”
Biostime shares fell by 0.41% and Mengniu shares by 1.2%. That compares with a 1.08 percent decline in the benchmark index.