Bright Dairy Buys Stake in NZ Milk Processor

Bright Dairy & Food Company has acquired a 51% stake in Synlait Milk, a New Zealand milk processor, for NZ$82m (US$58m).

Christchurch-based Synlait, the parent company of Synlait Milk, said it is planning to double the annual milk powder production capacity of its South Island plant to about 100,000t by 2011-12.

Synlait, 22.5% owned by Japan’s Mitsui & Co, will retain a 49% stake and keep 100% ownership of its dairy farms.

Bright Dairy is 65% owned by Shanghai-based Bright Food Group, which earlier this month failed in a bid to buy the sugar unit of CSR.

The Synlait deal is Bright Dairy’s first investment in processing facilities outside China.