Fonterra is working with the A-Ware Food Group in the Netherlands to set up a cheese and dairy ingredients factory there.
A-Ware will operate the cheese plant and Fonterra will operate the dairy ingredients plant alongside.
The factory will process whey and lactose into nutritional ingredients to supply Fonterra customers in Europe and Asia.
The two companies are completing full due diligence on the proposal at the moment, and hope to make the deal official later this year.
