Synlait is to invest $18 million to double lactoferrin manufacturing capacity at its Dunsandel plant, backed by an agreement with an unidentified customer.
Chief executive John Penno said “The agreement is a major step forward for our growing lactoferrin business and delivers to our strategic commitments.”
Lactoferrin is an iron-binding protein recognised for its anti-bacterial and anti-inflammatory properties. As a naturally occurring milk protein, it is commonly used in infant formula products throughout the world.
Penno said the move “continues to build our credibility as a producer of specialty dairy nutrition ingredients to world-leading nutritional companies.
“Our investment decision to double our lactoferrin manufacturing capacity is underpinned by a strengthening global market for lactoferrin, growing internal demand for our own infant formula manufacture and a secure portfolio of reputable lactoferrin customers.”
The expansion to Synlait’s lactoferrin facility is expected to be completed by October 2018.
Synlait category manager Elizabeth Reid said “As a specialty ingredient, lactoferrin commands a much higher price per tonne than many other dairy-based ingredients. Synlait’s experience making lactoferrin and access to a range of laboratory and technical expertise makes it one of the few producers in the world offering reliable access to significant quantities of infant nutrition-grade lactoferrin.
In April 2017 Synlait became the second company in the world to receive a GRAS (Generally Recognised As Safe) notice from the United States Food and Drug Administration to export its lactoferrin to the United States for use in infant formula and toddler formula.
Article sourced from: AgriHQ