Opportunities in 'tech-driven' infant formula sector, says SPX


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Opportunities in 'tech-driven' infant formula sector, says SPX

Related tags Infant formula Milk

Increasing global demand for infant nutrition products has created “strong opportunities” for manufacturers of dairy processing technology, SPX has claimed.

Speaking with DairyReporter.com, vice president of global commercial operations for SPX Flow Technology, Ross Skelton, revealed that this growing demand for infant nutrition products - driven in large by increasing emerging market prosperity – has driven nearly $200m worth of equipment orders in the last couple of years.

“Over population growth and an expanding middle class in emerging markets in regions such as Asia and the Middle East are helping to drive increased demand for infant formula and other dairy products, so we view these markets as having strong opportunities for SPX’s dairy processing solutions moving forward,”​ said Skelton.

“As the world’s population grows, and demand for liquid and powdered dairy products continues to rise, we are working with our customers to develop processes that have high production capacity, run efficiently and help preserve our environment.”

European, Asian demand

Last month, the North Carolina-based firm announced that its Flow Technology business had been awarded a $40m contract by a leading infant nutrition company to equip an infant formula processing plant in Germany.

SPX declined to disclose the name of the customer, but confirmed that equipment from its APV and Anhydro ranges have been purchased develop lines to convert milk into infant formula - primarily for export into emerging markets.

Prior to last month’s deal, SPX had received orders totalling more than $140m from customers in the dairy industry since 2011, including a $40m deal with Chinese firm Bright Dairy & Food to help it establish a new processing plant in the country.

The majority of these orders were made by the "increasingly technology-driven"​ infant formula sector, Skelton added.

Infant formula “good growth market”

Last month, Germany-based GEA announced that it had also received a significant order from a leading global dairy product manufacturer to supply lines for one of the largest lactose plants in Europe.

According to the company, the plant will “serve the growing worldwide market demand for lactose products used in infant nutrition and other food products.”

Speaking with DairyReporter.com, GEA head of corporate communications, Marc Poenitz. branded the growing global infant nutrition sector a “very good growth market."

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