American Dairy, the US-listed Chinese food group, is to expand production at two manufacturing sites.
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The company said today (9 June) that it had agreed to pay US$24.6m to Germany’s GEA Group for production equipment and installations at its Gannan and Longjiang facilities.
CEO Leng You-Bin said: “We are glad to continue our partnership with GEA, and ultimately to enhance our Gannan production facility using new equipment in accordance with the current standards of the European Union.
“We believe the equipment from trusted manufacturers like GEA will better ensure that we continue our rigorous quality standards.”
The deal will see GEA provide American Dairy with infant formula production equipment at the Chinese firm’s Gannan facility.
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By GlobalDataAmerican Dairy, meanwhile, said it had bought a dairy processing plant in Longjiang County, Heilongjiang Province for $4.4m.
GEA will also work on the building of another production facility at the site.
