Dairy cooperative Arla Foods is forming a joint venture with Indonesia’s PT Indofood CBP Sukses Makmur (ICBP) as the company expands its operations in South East Asia.

In a statement today (22 December), the European dairy giant said it will not be disclosing product details of the tie-up – known as Arla Indofood Sukses Makmur -,  production and launch dates at this stage. However, it said the venture will give Arla 50% ownership plus one share of the new company, while ICBP will hold 50% minus one share.

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ICBP is a fast-moving consumer goods company, which also has businesses in noodles, snack foods, seasonings, nutrition, “special foods”, and beverages supported by more than 50 production plants spread across Indonesia. The company exports to more than 60 countries.

“South East Asia is a strategic growth region in Arla Foods’ strategy – Good Growth 2020 – and the company is now taking another step towards building its business in the region,” according to the statement from the maker of Lurpak butter and Castello cheese.

Tim Ørting Jørgensen, the executive vice president of Arla’s international business, added: “We are pleased to enter into a partnership with ICBP, which has strong experience with dairy and has an extensive FMCG distribution network in Indonesia with access and relationships to all key retailers. Teaming up with ICBP will allow us to offer our high-quality dairy products to more Indonesian consumers.” 

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ICBP director Axton Salim said: “We are pleased to have the opportunity to team up with Arla Foods, one of the strongest dairy companies in the world with a strong innovation and research platform. This collaboration will complement our existing dairy business in Indonesia.” 

Arla’s Jørgensen said Indonesia is an important market in which demand for dairy is growing.

“We look forward to partner with Indofood CBP and to launch more of our products to the market in the future,” he added.