HCM CITY — NutiFood Corp and Sweden’s Backahill Group will partner to invest in Swedish dairy and organic food for sale in Europe and Asia.

The two parties signed a memorandum of understanding in HCM City on September 11 to lay out the plan.

According to the memorandum, NutiFood and Backahill will each contribute 50 per cent of the investment capital needed to set up a joint venture.

The new group will combine NutiFood’s knowledge of the dairy and nutritional food market with Backahill’s international reputation to become a force in the European and Asian markets, reported saigondautu.com.vn.

NutiFood chairman Trần Thanh Hải said Sweden’s market provides good opportunities for his company to expand its business worldwide.

NutiFood jumped at the chance to develop agriculture – especially organic dairy farms – in green industrial zones belonging to Backahill subsidiary Foodhills to provide the raw materials needed for nutritional products popular in Europe, Việt Nam and other Asian markets, he said.

The two sides are negotiating the volume of investment they will put into the joint venture, Hải said. Negotiations should be finished by December, and operations will begin soon after.

Backahill started as a family company founded in 1998 in Ängelholm, Sweden specialising business, ownership, management and development of real estate projects.

Backahill is already a strategic shareholder in five large companies listed on NASDAQ Stockholm. Erik Paulsson is the company’s billionaire founder and chairman.

In 2016, Backahill Group established Foodhills Company to build a sustainable food production centre in Bjuv, with the ultimate goal of becoming a production hub for the European market.

Foodhills is based in southern Sweden in the Nordic agricultural region. There are about 2,500 nearby organic farms which supply abundant raw materials for the food processing plants. — VNS