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China suspends Bellamy’s export licence of new canning facility

China suspends Bellamy’s export licence of new canning facility article image

Infant formula maker Bellamy's shares are in a trading halt – after Chinese authorities decided to suspend the export licence of its newly-acquired subsidiary, reports the ABC.

The subsidiary in the firing line is Camperdown Powder Pty Ltd, a Victorian blending and canning facility, in which Bellamy's purchased a 90 per cent indirect stake for $28.5 million.

In a statement to the ASX, Bellamy's said it was trying "to determine the reasons and impact of the Camperdown's suspension of its CNCA licence by the China authorities overnight".

China is Bellamy's major export market and, in recent months, the company has been plagued by problems with sales and regulations there.

Bellamy's bought the Camperdown facility with the hope that it would guarantee access to the Chinese market, and form a key part of its turnaround strategy.

Earlier this week the embattled company raised $60.4 million to help fund the acquisition. 

Bellamy's shares have plunged by more than 30 per cent in the past 12 months.

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