Synutra Announces Long-Term Partnership Agreement with Sodiaal

Synutra International

, a leading infant formula company in China and a producer, marketer and seller of nutritional products for infants, children and adults, today announced the signing of a long-term industrial and commercial partnership agreement with Sodiaal, the leading dairy cooperative in France, and its subsidiary, Euroserum, the world leader in demineralized whey powders. Under this partnership agreement, Synutra will build a new drying facility in Carhaix, France (located in the Brittany region), intended to manufacture powdered milk and fat-enriched demineralized whey for the needs of the Synutra group. Located in the heart of the central Brittany milk-collection basin, this new drying facility will meet the strictest European quality and hygiene standards and will be capable of producing 60,000 tons of powder per year initially, with a designed capacity of up to 100,000 tons annually. Synutra anticipates spending approximately 90 million euros ($118 million) to build and operate this drying facility with the majority of funding for this project expected to come from PRC bank loans. The operational commissioning of the drying facility is expected to take place by year-end 2014, subject to full PRC government approval and, once completed, is expected to employ approximately 75-100 employees. Upon commissioning of the drying facility, Euroserum and Sodiaal will supply the facility with demineralized liquid whey and milk. This agreement and the construction of the drying facility in Carhaix remains subject to the approvals of the government of the People's Republic of China, granted by (i) the National Development and Reform Commission, (ii) the Ministry of Commerce and (iii) the State Administration of Foreign Exchange (SAFE).