Danisco announces investment to expand their production of LCI cultures in China to meet growing demand in the region for the fresh dairy and dietary supplement markets.
This expansion sustains the growth commitment of DuPont, which acquired Danisco last May. The investment is part of a global Danisco multi-year capacity expansion programme for freeze-dried Live Culture Inoculant (LCI) cultures. The company has purchased a food processing plant north of Beijing, close to some major customer locations, and will convert it into a state-of-the-art blending and packaging production platform to serve the region, with commissioning expected in the fall of 2012.
“This is a significant investment by Danisco, to expand our growth in China and it is evidence of our strong long-term commitment to the Chinese market and our customers,” said Yongjing Li, president, Danisco China.
Well-Positioned to Meet Increasing Market Demand
“This is a major step for our business,” continues Fabienne Saadane-Oaks, president, Danisco BioActives. “China is already a significant market for our YO-MIX™ fresh dairy cultures. In addition, this new facility also will support our HOWARU® probiotics production for dietary supplements, food and beverages. With increasing regional customer demand for both products, we expect to see continued growth for the foreseeable future,” concludes Saadane-Oaks.
DuPont’s Continuing Commitment to China
Danisco was acquired by DuPont in May 2011, and Danisco’s food ingredients are now part of the DuPont Nutrition & Health business. “This investment builds on our market leadership position and is aligned with our strategic target of creating value through organic and acquisitive growth,” comments Tony Su, president, DuPont Greater China. “Notably, the expansion confirms the company’s long-term commitment to the cultures market in China.”
Rising Market Growth
Dairy products, especially yogurt, enjoy a healthy image in China. According to market research company Euromonitor*, the future growth of fermented dairy retail sales in China is estimated to achieve a 12 percent CAGR in the period 2011 to 2016 due to market drivers such as a growing middle class, urbanisation and the adoption of packaged convenience food. In addition, the government is working on guidelines to increase calcium intake in the diet. Probiotic dietary supplements are experiencing similarly high growth, estimated in excess of 16 percent in 2009-10*.
This news release contains forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by DuPont, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials, research and development of new products, including regulatory approval and market acceptance; seasonality of sales of agricultural products; and severe weather events that cause business interruptions, including plant and power outages, or disruptions in supplier and customer operations. The company undertakes no duty to update any forward-looking statements as a result of future developments or new information.
YO-MIX™ and HOWARU® are a trademark and a registered trademark of DuPont or its affiliates.
Richard Donovan, Communications Manager, Cultures Division