Europe-Asia Alliance

Ingredient and processing aid supplier Eurogerm has announced it has signed an alliance agreement with Nisshin Seifun, a leading flour milling group in Japan and specialists on the markets of East Asia.

In order to strengthen the ties between the two groups and establish a sound partnership base, Eurogerm said Nisshin Seifun will purchase roughly 15 per cent of shares in the company. Jean-Philippe Girard, chief executive officer of Eurogerm, will keep a majority stake i nthe group.

Eurogerm said the first practical step will be the creation of a 50/50 joint-venture between the two groups in China. The joint company will be underpinned by the historical presence of Nisshin in the country and enjoy the benefit of its knowledge of the Chinese market and modern infrastructures, which include a laboratory and test baking center based in Shanghai, China.

The agreement also includes an exclusive licence agreement covering the import, production and distribution of Eurogerm products and services in Japan, China and Thailand, and the statement of a general principle of agreement on technical and business collaboration in ASEAN countries (particularly Vietnam, Indonesia, Malaysia, the Philippines and Singapore).

Eurogerm said this alliance is in keeping with its international growth strategy; a strategy targeted at sealing high added-value alliances and establishing new subsidiaries in high potential areas such as Asia, which has one of the strongest rates of growth in the world in the wheat-flour-bread products sector.