French dairy co-operative 3A is setting up a joint venture company with its Spanish counterpart, Kaiku Corporacion Alimentaria.
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From April, the 50:50 venture will operate from 3A’s plant in Toulouse, which employs 200 staff.
The plant had been threatened with closure following the expiry of a major contract with the Candia milk brand at the end of last month.
The tie-up with Kaiku is expected to open up new markets to the plant in the form of yoghurt and fresh cream exports to Spain and Portugal, compensating for the loss of its milk production activities.
3A and Kaiku are investing an undisclosed amount in increasing capacity at the plant and extending production to also include fromage frais and desserts, which could create 60 new jobs over the next three years.
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By GlobalData
