Glanbia Updates on Proposed Joint Venture with Dairy Ingredients Ireland
The purpose and strategy of the proposed new joint venture will be to facilitate the continued development of the existing global Dairy Ingredients business including the flexibility to expand milk processing capacity post the abolition of EU milk quotas in 2015.
27 Jun 2012 --- Further to the interim management statement of 9 May 2012, Glanbia plc, the global nutritionals solutions and cheese group, confirms that it continues to engage in constructive discussions with its majority shareholder, Glanbia Co-operative Society Limited (“the Society”), to create a joint venture (40% Glanbia plc: 60% the Society) in respect of its Irish dairy processing business, Dairy Ingredients Ireland.
Dairy Ingredients Ireland is a business unit of the Dairy Ireland division of Glanbia and is the largest dairy ingredients processor in Ireland. The purpose and strategy of the proposed new joint venture will be to facilitate the continued development of the existing global Dairy Ingredients business including the flexibility to expand milk processing capacity post the abolition of EU milk quotas in 2015.
For any new processing capacity to be ready for 2015 a planning application needs to be submitted in early July. Consequently, Glanbia is finalising an option to purchase a greenfield site at Belview, Co. Kilkenny from IDA Ireland (Industrial Development Agency). Any new development is contingent on the final outcome of the ongoing discussions with the Society.
Considerable progress has been made with the proposed transaction and while discussions are progressing well, it is now expected that these discussions will not be concluded before the end of August 2012.
