Campina starts joint venture in Thailand with Thai Dairy Industries

27/01/06 The international co-operative dairy company Campina has closed a 50/50-joint venture deal with Thai Dairy Industries for the local production of fresh and long-life consumer dairy products in Thailand. This joint venture with one of the largest dairy companies in Thailand is an important expansion of Campina’s existing activities in Thailand. Campina said that this promising new step is yet another landmark in Campina’s strategy to realise growth with consumer products in a select number of countries in South East Asia. Last year Campina entered a joint venture in Vietnam with Vinamilk, the largest dairy organisation in Vietnam.

With annual sales Euro 90 million and 1,100 staff members Thai Dairy Industries is one of the largest private dairy organisations in Thailand. Thai Dairy Industries is the most important supplier of sweetened condensed milk. The organisation’s production facility in Ayuthaya is the largest manufacturer of condensed milk in South East Asia. They also produce the condensed milk which Campina markets under the Alaska brand in South East Asia. The production of sweetened condensed milk in Ayuthaya does not fall under the joint venture operations.

The joint venture with Thai Dairy Industries, which will become operational on 26 January 2006, will involve the production of fresh and long-life consumer dairy products in the production facilities of Thai Dairy Industries in Ayuthaya. The joint venture covers the production of dairy drinks, among others, and supplies these to both parties. Campina and Thai Dairy Industries will each conduct their own marketing and sales activities.

The joint venture combines the best of both partners. Thai Dairy Industries contributes its production facilities in Ayuthaya for fresh and long-life dairy, Campina its know-how in the field of innovation, international product ideas, technological know-how and management of production facilities for milk and milk drinks. Campina will be responsible for managing the joint venture. Thai Dairy Industries will appoint the chairman of the Board of Directors. Campina will end its own production of pasteurized milk and long-life milk drinks in Bangkok.

“I’m pleased with the joint venture agreement with Thai Dairy Industries” says J.J.G.M (Justinus) Sanders, Campina’s CEO. “For Campina this agreement means a strengthening of its position in South East Asia, including Thailand, and represents important efficiency benefits for both partners”

Since the spring of 2004 Campina has been active on the Thai market with pasteurised milk and long-life dairy drinks under the brand names Campina and Campina Chokchai. Sales of these products are developing positively. Campina is also a supplier of sweetened condensed milk under the brand name Campina Alaska in this region.

Along with its ambitions for expansion in ingredients worldwide and with dairy drinks and desserts in Europe, accelerated growth with consumer products in a select number of countries in South East Asia is one of Campina’s spearheads when it comes to strategic development. Campina took another step towards realising its ambitions for South East Asia when it took over Parmalat Thailand (March 2004) and formed a joint venture with Vinamilk, the largest dairy company in Vietnam (March 2005). Campina has seen growth figures both in Thailand and in Vietnam for milk and dairy drinks. Thanks to its strong market positions, the international innovation centre Campina Innovation and modern, large-scale production facilities in Europe, Campina has the relevant expertise and know-how to also help it achieve a market position in South East Asia.