China’s biggest dairy company, Yili (Inner Mongolia Yili Industrial Group Co Ltd), said on Friday it would spend another 2 billion renminbi ($410 million) on top of the RMB1.2 billion already spent on its Waimate project in South Canterbury.
Yili said its Oceania production base would be the world’s largest integrated dairy production base and was the first project in a new package of co-operation between the 2 countries, including packaging, production, processing and research & development.
The new investment will be used in 4 parts, including a raw milk deep-processing project, a UHT liquid milk project, a milk powder production facility and a packaging facility.
Yili also signed a scientific co-operation agreement with Lincoln University on Friday, covering the whole dairy industry chain. The first focus will be on innovative technologies for improving nutrition & quality assurance in dairy products.
Yili signed a smaller joint venture with Dairy Farmers of America a fortnight ago, for a $US100 million plant in Kansas to produce 80,000 tonnes of milk powder. Yili will put up $US30 million.
Attribution: Company release.