The company will operate as Corman Miloko Ireland Ltd and involves an initial investment of €5m, cite reports in the UK press this weekend.
The deal will see the transfer of a Glanbia-owned factory in Carrick-on-Suir, Co Tipperary, into Corman Miloko, as well as the Irish group's existing butteroil equipment at its plant in Ballyragget, Co Kilkenny. The move secures 40 jobs at the Carrick-on-Suir facility, reports the Sunday Times
Butterfat, the fatty substance of milk from which butter is made, makes up 82 per cent of butter and is used extensively as an ingredient in a wide spectrum of products, including ice cream, chocolate, cheese, and pasties.
With a €409 million turnover in 2004, Corman (a subsidiary of Belgian group Bongrain) markets a range of butter products, from butterfat to concentrated butter, supplying about 100 000 tons of products a year.
Glanbia, with an annual turnover of €1.8 billion, is a dairy processor and food ingredients group supplying casein, WPC, calcium among a wide spectrum of dairy-based food products.
According to the Sunday Times article this latest move by Glanbia has been prompted by the reform of the Common Agricultural Policy, which means that supports and refunds are set to be cut for butterfat.
Glanbia declined to comment to FoodNavigator.com about the deal.