The Danish firm (headquarters pictured) said it had bought a food processing facility north of Beijing – situated close to major customer locations – that it would convert into a blending and packaging production platform to serve regional demand.
Danisco cited a Euromonitor forecast that the growth of fermented dairy retail sales would hit 12 per cent Compound Annual Growth Rate between 2011 and 2016.
Market drivers given by the market research firm include a growing middle class, urbanisation and rising adoption of packaged convenience food, while the Chinese government is also working on guidelines to increase dietary calcium intake.
Euromonitor said that probiotic dietary supplements were enjoying similarly strong growth estimated in excess of 16 per cent in 2009-2010.
Chinese cultures market
Commissioning of the site is expected in 2012, and Danisco said its investment formed part of a multi-year capacity expansion programme for freeze-dried LCI cultures.
Fabienne Saadane-Oaks, president, Danisco BioActives said the investment was a major business step.
She said: “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,” she added.
Danisco was acquired by DuPont in May, and Tony Su, president of DuPont Greater China said the investment was consistent with his company’s long term organic and acquisitive growth strategy in the country.
“Notably, the expansion confirms the company’s long-term commitment to the cultures market in China," Su said.