Biostime and Arla Foods sign a 10-year financing and supply agreement
Posted: 26 June 2012 | Arla Foods | No comments yet
Biostime is a provider of high-end pediatric nutritional and baby care products in China…
Biostime International Holdings Limited, 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.
This agreement is aiming 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 commented:
“We are very pleased to sign this 10-years cooperation agreement with Biostime. This new cooperation 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 in China’s premium infant nutrition market, clearly reinforces our confidence in the long-term development of the Chinese premium infant formula market.”