Arla Foods Ingredients has agreed to purchase Argentinian dairy co-operative SanCor’s 50% stake in Arla Foods Ingredients S.A (AFISA), as Arla moves to strengthen its position in South America.
AFISA was established in 2001 as a joint venture between Arla and SanCor, and was jointly operated by the two companies. Once the deal is completed, Arla will gain full ownership of AFISA.
AFISA is one of the leading producers of whey-based products in South America, and its manufacturing facility in Cordoba, Argentina processes approximately 900 million kilos of whey annually.
According to Arla, this makes AFISA the largest whey producer in Argentina and the South American trade bloc Mercosur.
SanCor agreed to the sale as the company has announced plans to restructure its operations, and AFISA did not fit into its strategy.
Henrik Andersen, senior vice-president in Arla Foods Ingredients said: “Arla Foods Ingredients greatly appreciates the collaboration with SanCor for the last 17 years.
“SanCor and Arla Foods Ingredients have agreed amicably that it is now time to move forward with our businesses separately.
“For Arla Foods Ingredients this is a unique opportunity for continued strategic growth in our whey business in general and specifically in South America; and AFISA will become a significant element in Arla Foods Ingredients’ global supply chain.”