Chinese infant formula group Yashili has been given the go-ahead to construct a planned NZ$220m (US$170.7m) infant formula production facility in Pokeno, New Zealand.

The Waikato District Council announced today (30 August) that it has approved the proposal following a three day hearing. The hearing officially closed on Monday and a 15 day appeal period commenced on Tuesday.

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Yashili’s plans, announced in January, received approval from the NZ Overseas Investment office in April.

The facility will be operated via its recently established subsidiary, Yashili New Zealand. It will have a capacity of 52,000 tonnes, the company said.

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 FoodGroup bought a majority stake in New Zealand milk processor Synlait for US$60m. 

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