Westland has signed a memorandum of understanding with Kalbe for a deal Westland chief executive Toni Brendish says is a significant opportunity to work with a southeast Asian market leader in infant nutrition and dairy products.
She said the memo would lead to a strategic relationship with Kalbe, allowing Westland to grow in ways it could not do with its own resources.
“Kalbe is a highly sought after customer with huge market penetration and networks in an increasingly important region,” Brendish said.
Kalbe also has a joint venture with Morinaga Japan for the production of infant formula in Indonesia.
That gives it about a 13% share of the domestic powdered milk market in Japan under both Kalbe and Morinaga brands, presenting more opportunities for Westland in the Japanese market.
“These strategic relationships with other companies enable Westland to get access into key markets through advanced, existing networks.”
Kalbe and Morinaga senior executives visited Hokitika and Rolleston operations earlier this year and were impressed with Westland’s strategy and capabilities.
“We hope to eventually become a Kalbe preferred supplier for a number of nutritional and consumer products.”
“This is an effective and prudent growth strategy for Westland, which we fully expect to lead to financial benefits for the company.
“Quantities and value will emerge later as discussions progress.”
