U.K.-based Associated British Foods PLC, or AB Foods, said June 3 that it will form a 50/50 joint venture in Shanghai with Singapore-based agribusiness Wilmar International Ltd. to manufacture, sell and distribute yeast and bakery ingredients.

The joint venture will acquire the bakery ingredients business of AB Foods subsidiary AB Mauri, and will use the supply chain and distribution network of Wilmar unit Yihai Kerry Arawana. The new business will also build and run a new yeast plant located within Wilmar's food-processing facility in the Taha industrial zone in China's Qiqihar city.

"Besides enhancing the range of quality ingredients, this joint venture will enable us to leverage on AB Mauri's baking know-how and technology to provide better service to the baking industry in China," Wilmar Chairman and CEO Kuok Khoon Hong said.

The joint venture entity will be based in Shanghai.