Sharechat Logo

Synlait Milk Limited (NZX: SML) signs new multinational customer agreement

Thursday 5th November 2020

Text too small?

Synlait Milk Limited (Synlait) has signed a manufacturing supply agreement with an established, global category leader.

Under the agreement, Synlait will manufacture, blend, and package nutrition products which include plant-based products.

Synlait Chair Graeme Milne commented: "Our team has been working on this agreement for some time. It recognises our world class technical and quality capabilities and utilises our integrated manufacturing chain. We are pleased to welcome this important multinational customer to Synlait’s network."

Synlait CEO Leon Clement commented: "This is the start of a valuable, enduring, strategic partnership that gives us broader market and category exposure in Asia Pacific."

“Asian markets are experiencing strong sector growth as consumers seek nutritional products that support better health. 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.”

What this agreement means for Synlait:

• Recognition of Synlait’s world class technical and quality capabilities

• Expected utilisation of Synlait’s integrated manufacturing chain, delivering fully finished, consumer products to market

• Expected utilisation of Synlait Pokeno and Auckland’s capacity

• Delivering on our strategy with customer, category and market diversification progressing

• Expected to have a positive impact on earnings from FY23

Processing and packaging customisation will be required at Synlait Pokeno and Synlait Auckland, with expected capital expenditure of $70 million spread over two years. Commercial production is currently projected to start mid-2022.

Source: Synlait Milk Limited (NZX: SML )

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Livestock Improvement Corporation Limited (NZX: LIC) Half Year Financial Results
Vital Limited (NZX: VTL) Appointment of Chief Operating Officer
New Talisman Gold Mines Limited (NZX: NTL) Binding Option to Acquire Broken Hills Gold Mine
Senior Trust Retirement Village Listed Fund (NZX: SRF)
SkyCity Entertainment Group Limited (NZX: SKC) Change in Senior Managers
Fonterra Shareholders' Fund (NZX: FSF) Communication to Fonterra Farmers
Vector Limited (NZX: VCT) Operational Performance for the 6 Months Ended 31 December
Chorus Limited (NZX: CNU) Q2 FY21 Connections Update
Genesis Energy Limited (NZX: GNE) FY21 Q2 Performance Report
Synlait Milk Limited (NZX: SML) Increases Forecast Milk Price to $7.20 kgMS

IRG See IRG research reports