Formula approval bolsters China prospects for New Zealand's Synlait Milk

WELLINGTON - New Zealand dairy processor Synlait Milk said Tuesday that it has received official Chinese approval to make retail-ready infant formula for export to China.

Synlait Milk managing director John Penno said the approval from the Certification and Accredition Administration would add to its existing Chinese registration as a manufacturer of general dairy products and infant formula base powders.

The company, which is 39-percent owned by China's Bright Dairy, said earlier this month that it was pursuing a 25 percent stake in Sichuan New Hope Nutritional Foods Co Ltd to create an integrated supply chain from manufacturing to distribution and sale in China.

"Being able to manufacture and export high quality finished infant formula products to China will help Synlait Milk deliver on its value added strategy, and provides an important confidence boost for our China business where we see significant opportunity for future earnings," Penno said in a statement.

Synlait Milk's application for registration was sent to the Chinese regulatory authority following the approval of its risk management program by New Zealand's Ministry for Primary Industries for its dry blending and consumer packaging plant.

Its state-of-the-art drying blending and packaging plant had a processing capacity of 30,000 tons a year, or up to 110 cans per minute.

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