South Korea: Maeil Dairies enters joint venture with Beingmate
Maeil Dairies, a Korean manufacturer of milk products, infant formula, coffees and juices, has entered into a joint venture agreement with Hangzhou, China based Beingmate Baby & Child Food, a leading Chinese baby formula manufacturer, to develop new health-focused baby milk products.
Named Hangzhou Beingmate Maeil Food Company, the joint venture will reportedly focus on the production of a special instant formula for premature or low-weight babies, lactose-intolerant infants and those with amino acid metabolism disorders.
The venture will be established in early 2016 after being licensed by the Chinese government. Maeil will invest approximately 400 million KRW ($0.34 million) to own a 40% stake, while Beingmate will invest approximately 600 million KRW ($0.52 million) to own the remaining 60% stake in the venture.
Under the terms of the deal, Maeil Dairies will be responsible for the production of special milk powder, while its Chinese partner will be in charge of marketing and sales in China.
Commenting on the venture, a spokesperson for Maeil Dairies said: "It will give us a chance to show off Korea's technology and formula quality to Chinese consumers", adding that: "by carrying out joint research, we hope to contribute to enhancing the health of Chinese infants, and establish the joint brand as a leading formula maker in China".
The joint brand is due to launch its first product in late December.
Source: Korea Times / Korea Economic Daily