Glanbia is to build $20 million plant in Nigeria to supply evaporated milk and milk powder to the local market in a joint venture with consumer goods company, PZ Cussons.
The new plant is expected to be commissioned in 2005. Glanbia will operate the plant and supply it with Irish milk powder (maximum capacity of 35,000 tonnes) while PZ Cussons will distribute and market the evaporated milk products through its existing Nigerian subsidiary.
The deal is expected to add around $1 million per annum to Glanbia's profits when up and running. The move is seen as consistent with Glanbia's growth strategy of establishing joint ventures when ebtering new overseas markets.
Earlier this year Glanbia announced a $200 million cheese and whey protein joint venture in New Mexico in the US which is also expected to be commissioned in 2005/2006.