FDBusiness.com

Biostime International Holdings, a premium provider of high-end pediatric nutritional and baby care products in China, has signed a 10-year financing and supply agreement with Arla Foods. The agreement is aimed at securing Biostime sufficient production capacity at Arinco, Arla’s largest infant formula production facility based in Denmark equipped with full formula spray-dry technology and using Arla’s own Danish milk.

Both companies have entered into a commercial agreement, qualifying Arla as the third European supplier of Biostime in the field of infant formulas. In order to strengthen their cooperation and secure additional capacity at Arinco, both parties have signed a 10-year agreement aiming at co-financing an investment of a possible upgrade and extension of Arinco’s capacity and secure a yearly capacity of 20,000 tons of infant formula powders dedicated to Biostime by 2015.

Jens Jorgen Hjortshoj, vice president of B-to-B Nutrition Business Unit in Arla Foods, comments: “This new co-operation will have a positive contribution into Arla’s business by enabling our company to produce high-quality dairy products with superior added value. This partnership with Biostime, a leading player inChina’s premium infant nutrition market, clearly reinforces our confidence in the long-term development of the Chinese premium infant formula market.”