A new joint venture between Associated British Foods (ABF) and Wilmar International will manufacture, sell and distribute yeast and bakery ingredients in China.
The joint venture will acquire existing Chinese yeast and bakery ingredients activities of ABF division AB Mauri and will leverage Yihai Kerry Arawana’s supply chain, extensive sales and distribution network and local market expertise in China.
The joint venture, based in Shaghai, will also build and operate a new yeast plant co-located with Wilmar’s food processing plant in the Taha industrial zone in Qiqihar City, China, significantly increasing capacity.
The joint venture will have cost competitive production and, combined with an established portfolio of products, will be well positioned to capture growth in both traditional Chinese bakery products and western-style baked products, consumer demand for which is expanding rapidly.
“The joint venture will leverage AB Mauri’s baking know-how and technology with Yihai Kerry Arawana’s extensive route to market, local management expertise and its complementary portfolio of products,” said AB Mauri’s CEO, Cathal Duffy.