Nestlé is offloading a majority stake in a factory in northern China.

The world’s largest food maker has sold 95% of Nestlé Hulunbuir to Longhua Zhongchen Enterprise Management Consulting Centre, a shareholder of Chinese dairy processor Ningxia Saishang Dairy.

In January, Nestlé said it was weighing up the options for the plant in Hulunbuir, a city in Inner Mongolia, a province in north-eastern China.

The facility, one of four dairy sites Nestle has in China, manufactures raw milk powder.

The Hulunbuir site will remain open, a spokesperson for Nestle’s China business confirmed.

“Dairy is an important component of Nestlé’s portfolio and business operations in China. Over the years we have built a healthy dairy business with significant investments, and we are committed to further develop it, ensuring it is sustainable. In line with this strategy we are shifting to a new business model for our Hulunbuir dairy factory,” Nestlé said in a statement.

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Ningxia Saishang Dairy is a processor based in Ningxia in central China.

“This move will bring benefits to all stakeholders including the community, government and other concerned parties. It will further revitalise the Hulunbuir dairy industry,” Nestlé added.