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).
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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.
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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.
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