0022190fd330123b6b7f0d.jpg (Photo : www.chinadaily.com.cn)
Yili, a dairy industry giant in China, opened its first major factory overseas in New Zealand's South Island on Tuesday. The Chinese dairy giant also announced that it will be investing almost three times more for the newly opened plant by 2019.
Yili's plant located in Glenavy, South Canterbury, was constructed by Inner Mongolia Yili Industrial Group subsidiary Oceania Dairy Limited for NZD236 million ($185.14 million).
The dairy firm also confirmed that it plans to invest NZD400 million ($313.79 million) more in the overseas plant within the next five years. The Glenavy plant is already producing infant milk formulas.
In September, the first phase of the plant's construction created more than 70 jobs. During its first season, the plant processed 220 million liters of milk from 48 domestic farms, said Zhang Jianqiu, the executive president of the Yili Group, in a statement.
"The Oceania Dairy factory at Glenavy is Yili's first major offshore investment and the company is very focused on ensuring the success of the operation," Zhang said.
Zhang also added that the largest milk exporter in the world, New Zealand, is cooperating with China to meet the increasing milk demand in the country.
Another 150 jobs will be created by the plant as it plans to include an infant formula canning line, an ultra-high temperature milk goods and lactoferrin facility, and a whole milk powder dryer within the upcoming five years.
Oceania Dairy CEO Aidan Johnstone said that the firm is expecting to handle over 630 million liters of milk from domestic farm suppliers before the expansion project ends in 2019. It will also result in the generation of NZD700 million ($549.23 million) export revenues.
Oceania was purchased in April 2013 by Shanghai-listed Yili, which has become the world's 10th biggest dairy firm due to its $7.6-billion revenue in 2013.
