DMV International, the pharmaceutical arm of Campina, a Netherlands-based dairy major and the business unit, Lactose New Zealand, a wholly owned subsidiary of Fonterra has teamed -up for excipients manufacture and research. The 50:50 joint venture company known as 'DMV-Fonterra-Excipients GmbH & Co.KG' is expected to play a major role in excipients. Going by the market demand for excipients, the new company is expected to generate a turnover of approx. € 75 million and employ 100-110 people.

The key focus of DMV-Fonterra-Excipients GmbH & Co.KG will be to expand the business with a broad portfolio of excipients and with new product-lines and functionalities.

All current products in the parents' portfolio, used as excipients in pharmaceutical applications (ethical, generic, OTC) plus the lactose used in the production of Fine Chemical or semi-pharma applications will fall within the scope of the joint venture. Lactose for food application will stay with both parent companies. Under the joint venture, the production locations will be in the Netherlands (disintegrants, Foxhol), Germany (directcompression lactose, Nörten-Hardenberg), and New Zealand (inhalation lactose, Kapuni), with regional sales offices around the world.

The CEO of the JV has been appointed by DMV International and the headquarters will be based in Goch-Germany.

According to J.J.G.M. (Justinus) Sanders, CEO of Campina BV, the joint venture would improve the position in the global excipients market and strengthen the presence in the fast growing emerging pharmaceutical sector in the Asia Pacific region. "The JV is fully in line with Campina's growth strategy and will form a solid basis to continue long term investments in innovation, quality and service, needed to stay ahead. It is a unique opportunity to further consolidate our position in the pharmaceutical business.

"The complementary strengths of both parties and the unique situation of global dual sourcing will enhance growth to improve our position as a leading player in excipients, stated Andrew Ferrier, CEO, Fonterra.

Campina has a strong position in Europe and Japan, while Fonterra has been successful in building a strong position in the Asia Pacific region and has a major supply agreement with one of the world's leading pharmaceutical companies. Campina has around 6,800 employees and an annual turnover of around € 3.6 billion. Fonterra'a annual turnover of around € 5.9 billion and approximately 18,000 employees.