- Synlait Milk (SM1) has signed a manufacturing supply agreement with what it considers to be a ‘global category leader,’ however, details of the deal remain confidential
- Under the agreement, Synlait is set to manufacture, blend and package nutrition products, which includes plant-based products, at its facilities in New Zealand
- While the company has not disclosed who the partnership is with, CEO, Leon Clement, says the strategic partnership will give Synliat exposure to the Asian Pacific market
- On the market this afternoon, Synlait is down 2.85 per cent and is trading for $4.78 per share
Synlait Milk (SM1) has signed a manufacturing supply agreement with what’s is deems to be a ‘global category leader,’ however, the full details of this deal remain a mystery.
Synliat Milk is a New Zealand company which produces a range of nutritional milk products around the world.
The agreement will see processing and packaging customisation completed at the company’s facilities in Pokeno and Auckland, with expected capital expenditure of $70 million over two years.
Under the agreement, Synlait is set to manufacture, blend and package nutrition products which include plant-based products. The commercial production is expected to start mid-2022.
Chair, Graeme Milne, said the team has been working on this agreement for some time.
“It recognises our world-class technology and quality capabilities and utilises our integrated manufacturing chain. We are pleased to welcome this important multinational customer to Synlait’s network,” Graeme said.
Even though the customer has not been named, CEO, Leon Clement, has given a glimpse that the strategic partnership will give Synliat exposure to the Asian Pacific market.
“Asian markets are experiencing strong sector growth as consumers seek nutritional products that support better health,” he said.
“Synlait is excited to play a role in this journey. This is a significant step forward for us as we genuinely diversify our customer, category and geographic reach,” he added.
On the market this afternoon, Synlait is down 2.85 per cent and is trading for $4.78 per share at 2:59 pm AEDT.