The stipulated 20-day dispute resolution process between a2 Milk Co (a2MC) and Synlait over the cancellation of Synlait’s exclusive manufacturing rights has failed. The pair will now go into confidential binding arbitration.
In September, a2MC said it was cancelling Synlait’s exclusivity rights because it had failed to meet the required delivery level for in full- and on-time performance.
Synlait said the cancellation only relates to the exclusivity deal, and that its Nutritional Powders Manufacturing and Supply Agreement (NPMSA) for the a2 Platinum and other nutritional products.
“Synlait continues to hold the Chinese regulatory State Administration for Market Regulation (SAMR) licence which is attached to Synlait’s Dunsandel manufacturing facilities.
“The licence is for The a2 Milk Company’s Chinese labelled 至初 Infant Formula (stages one, two and three), the company expects to manufacture those products for The a2 Milk Company for products destined for the China market for the period of that licence (currently expiring September 2027),” a statement from Synlait said.
