Chinese dairy producer Inner Mongolia Yili Industrial is planning to invest around CNY2bn ($327m) in its Oceania Dairy production base in New Zealand.
The proposed investment will be employed in the construction of a raw milk processing plant, a UHT milk plant, a milk powder plant and a packaging plant on the base.
Of the total investment, around CNY200m ($32.5m) will be used in the milk processing plant and CNY500m ($81.39m) in the UHT liquid milk plant.
The move comes in response to increasing demand from Chinese customers for overseas dairy products as the reputation of local brands has been damaged due to the melamine-tainted baby formula scandal in 2008, Xinhua reported.
Yili opened Oceania Dairy production base in Waimate, South Island, on Friday, which is said to be the largest integrated dairy production base in the world.
The company has so far invested around CNY1.2bn in the production base.
Yili will research on nutritional enhancement and quality assurance in dairy products in the coming years, under an agreement with Lincoln University of New Zealand.
Image: Chinese leaders and New Zealand Prime Minister John Key jointly unveiled Yili Oceania Production Base. Photo: courtesy of PRNewswire / Inner Mongolia Yili Industrial.
