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- Synlait Milk (SM1) secures approval from China’s State Administration for Market Regulation to re-register the a2 Milk Company’s (A2M) Chinese-label infant milk formula (IMF)
- The IMF product is approved for three stages and is formulated in line with China’s national GB standards
- SM1 claims the re-registration is “pivotal” for its ongoing manufacturing and supply agreement with the a2 Milk Company, which will export its IMF product into Chinese markets until September 2027
- Production at the Dunsandel facility is expected to begin this month, ahead of commercialisation 1H 2024
- SM1 shares were trading at $1.65, while A2M was at $5.71 at 10:45 am AEST
Synlait Milk (SM1) has received approval from China’s State Administration for Market Regulation (SAMR) to re-register the a2 Milk company’s (A2M) Chinese-label infant milk formula (IMF).
The IMF product has been approved for three stages, and has been formulated in line with China’s national GB standards at Synlait’s Dunsandel facility.
The approval will allow the company to manufacture and export the IMF for Chinese markets until September 2027.
SM1 claims the re-registration is “pivotal” for its ongoing manufacturing and supply agreement with the a2 Milk company.
“We are thrilled to have achieved this significant milestone, which is pivotal to the long-term success of our Advanced Nutrition business,” Synlait CEO Grant Watson said.
“Synlait and The a2 Milk Company have a long-standing and complementary partnership, and we look forward to continuing to support their China growth ambitions.”
Production at the Dunsandel facility is expected to begin this month ahead of commercialisation in the first half of 2024.
The a2 Milk Company Managing Director and CEO David Bortolussi said the approval provided the company with continued access to China’s substantial milk formula market, which remains a “key” focus of the company’s refreshed growth strategy.
SM1 shares were up 10.7 per cent, trading at $1.65, while A2M shares were up 6.93 per cent to $5.71 at 10:45 am AEST.
