Dairy group Ornua is to acquire the Shanghai based dairy manufacturer, Ambrosia Dairy, giving the former Irish Dairy Board its first manufacturing base in China.
Ambrosia Dairy manufactures products such as sour cream, yoghurt and speciality cheeses which it supplies to the retail and food service markets in the Shanghai region.
The Ambrosia facility will also include a new product development centre that will focus on developing cheese products for the Chinese market.
This marks the latest move in a series of acquisitions and capital spending projects by Ornua in different parts of the world including Africa, Asia, Europe, the Middle East and the US.
China is one of the most important and fastest growing global dairy growth markets and, despite a slowdown in the economy, it still has a massively expanding middle class as its shifts from a manufacturing to a more service based economy.
Kevin Lane, Ornua's chief executive, said the deal is another important milestone in the company's growth as a global supplier of quality dairy products.
"We are buying an excellent dairy enterprise which allows us to significantly grow our Chinese business in one step. It provides us with a manufacturing base in China and brings on board a team with local knowledge and expertise, complementing our own existing in-market operation," he added.
