CHINA/NZ: Yashili International to build CNY1bn NZ dairy
Yashili International is to spend CNY1.1bn (US$176.7m) to build a 52,000-tonne capacity dairy in New Zealand, via its recently established subsidiary in the country.
Yashili New Zealand Dairy Co has already signed a conditional purchase agreement for the land, although the building plan is still subject to government approval, the Chinese group said yesterday (10 January).
The move is another example of growing Chinese interest in New Zealand's dairy industry.
Late last year, Inner Mongolia Yili Industrial Group announced a deal to buy New Zealand's Oceania Dairy Group, while, in 2010, China's Bright Food Group bought a majority stake in New Zealand milk processor Synlait for US$60m.
The firm said it expects the dairy to have a capacity of 52,000 tonnes of finished and part-finished goods, including milk power. It is scheduled to be operational by the second half of 2014.
Of the funds earmarked for the project, Yashili said CNY950m will be used to acquire land and construct the facility, while CNY150m will be kept aside for working capital requirements.
Yashili International Holdings Ltd
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 01230)
PROPOSED ESTABLISHMENT OF
MANUFACTURING FACILITY IN NEW ZEALAND
This announcement is made by Yashili International Holdings Ltd (the “Company”) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571).
The board of directors (the “Board”) of the Company is pleased to announce that the Board has approved the project plan for establishing a manufacturing facility for production of finished products and semi-finished products, including base milk powder in New Zealand (the “New Zealand Facility”). The annual production capacity of the plant is expected to about 52,000 tons. The total investment involved in the establishment of the New Zealand Facility by the Company is estimated to be RMB1.1 billion, out of which RMB950 million will be for acquisition of land and cost of construction, and RMB150 million will be utilized as working capital of Yashili New Zealand Dairy Co., Limited (“Yashili New Zealand”), a wholly-owned subsidiary of the Company which will establish and operate the New Zealand Facility expected to be completed and put into operation in the second half of 2014. Yashili New Zealand has submitted an application for consent to an investment in significant business assets to the Overseas Investment Office of New Zealand (“OIONZ”)in relation to the proposed investment in the New Zealand Facility in accordance with the relevant laws and regulations of New Zealand.
Yashili New Zealand has entered into a conditional purchase agreement to acquire the land (the “Land”) where the New Zealand Facility will be operated. The acquisition of the Land is subject to various conditions provided in the conditional purchase agreement, including Yashili New Zealand obtaining an investment approval from OIONZ. The proposed investment is subject to relevant government approvals and further announcement in respect of the Company’s investment in the New Zealand Facility will be made with the approval of government authorities.
By Order of the Board
Yashili International Holdings Ltd
Original source: http://www.yashili.hk/attachment/20130110230201001569852_en.pdf
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