For inquiries on this matter, please contact
- Synlait Limited
John Penno, CEO
- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd ("Mitsui", headquartered in Tokyo, Japan) and Synlait Limited ("Synlait", headquartered in Rakaia, Canterbury, New Zealand) have announced Mitsui has increased its stake in Synlait from 14% to 22.5% by converting a part of its debt to equity.
On August 11, Mitsui exercised its option to convert a NZ$11.8m debt to equity and acquired the additional 8.5% stake in Synlait.
Synlait's new milk powder plant south of Dunsandel started production early August. It is planned to manufacture some 30,000 metric tons of dairy products, mostly whole milk powder, for export primarily to Asia and Middle East countries. Mitsui as export agent of Synlait will provide logistics services from the plant to the final destinations in the international market.
Over the past decade global demand for dairy products has been rising by 4% per annum and supply has increased by only 2% resulting in unprecedented high commodity prices since early 2007 till today.
In the last twelve-month period, Synlait's farmland increased to 5,700 ha and cow number to 15,000 cows. Mitsui and Synlait will continue to work together to establish a sustainable supply chain of high quality dairy products of New Zealand through this "cow to customer" vertical integration.
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