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Fonterra plans to set up new European factory

New Zealand's largest company announces a "European partnership" to establish a new processing plant in the Netherlands. 

Caleb Allison
Wed, 30 May 2012

Fonterra has announced a partnership with a European food producer to set up a new dairy ingredients factory in the Netherlands.

The agreement with A-ware Food Group will see the Netherlands-based producer operate a new cheese plant, while Fonterra will run a dairy ingredients plant alongside it.

Whey and lactose produced at the site will be processed into "premium nutritional ingredients" to supply Fonterra's customers in Europe and Asia.

Fonterra CEO Theo Spierings says the company has been looking for a source of high-quality whey so it can capitalise on its "substantial" intellectual property in the manufacture of whey protein ingredients.

"With our New Zealand Milk business driving hard to optimise returns, we are producing more milk powders in New Zealand and therefore need alternative sources of whey to meet growth requirements.

"We also need more lactose for our global ingredient business. This partnership will give us greater access to both," Mr Spierings says.

Fonterra and A-ware will now start full due diligence on the proposal, with the plan expected to be finalised later this year.  

Caleb Allison
Wed, 30 May 2012
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Fonterra plans to set up new European factory