Chinese infant formula maker Beingmate Baby & Child Food is to establish a new dairy joint venture with two Chinese private investors.
Located in Beihai, a city of China’s southern autonomous region of Guangxi, the venture – Beihai Beingmate Dairy – will produce condensed milk, with other dairy products to be announced in the future, using “Beihai Beingmate’s existing equipment, experience, research capacity, as well as the two individuals’ extensive resources in China’s dairy industry”, Beingmate said in a statement. The company did not name the two investors.
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Initial seed investment of CNY1m (US$150,000) by Beihai Beingmate will be sunk into the company, with the private investors injecting an initial CNY980,000 combined.
The deal was announced shortly after Beingmate announced it had suffered group losses exceeding CNY200m in the first half of 2016, following the revelation its infant formula was being counterfeited. In April, the China Food & Drug Administration added Beingmate as another brand being counterfeited by a group of underground factories, which had also made fake infant formula under the Abbott brand.
