Yashili to set up milk processing facility in New Zealand

Yashili International, a producer of infant formula products in China, plans to invest CNY1.1bn ($175m) to set up a milk processing facility in New Zealand.

The company noted that its board of directors has approved the project plan to set up the processing facility.

The facility will produce finished products and semi-finished products, including base milk powder.

It is expected to have a production capacity of about 52,000t annually and is likely to go onstream in the second half of 2014.

Yashili New Zealand Dairy, a wholly owned subsidiary of Yashili International, will set up and operate the facility.

Yashili International plans to invest CNY950m ($151.3m) to acquire the land and construct the facility, and an additional CNY150m ($23.9m) as working capital.

Yashili New Zealand has submitted an application for consent to the Overseas Investment Office of New Zealand (OIONZ) over the proposed investment.

It has also entered into a conditional agreement to purchase the land where the new plant will be constructed.

The proposed investment is subject to relevant government approvals and other conditions.

Yashili International, headquartered in Chaozhou City, China, is primarily involved in the manufacture, marketing and sale of infant milk formula products

The company also offers preserved fruit products as well as nutritional food products, including soymilk powder, cereal products, rice flour, and milk powder under the Yashily and Scient brands.

This announcement by Yashili comes one month after China’s Inner Mongolia Yili Industrial Group announced plans to invest about $178m to acquire and upgrade Oceania Dairy’s milk powder plant in South Canterbury.