Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

China's Yashili plans $210M milk operation in NZ

China's Yashili International to set up shop in NZ with $210M milk processing operation

By Paul McBeth

Jan. 11 (BusinessDesk) - Yashili International Holdings, which manufactures and distributes infant milk formula products in China, is the latest Chinese company looking to invest in New Zealand, with plans to build a 1.1 billion yuan ($210 million) processing plant.

The Chaozhou City, Guangdong-based company's board signed off on a project to set up a manufacturing facility in New Zealand to process up to 52,000 tons of finished and semi-finished products including base milk powder by the second half of next year, according to a statement on the Hong Kong Stock Exchange. Yashili currently sources most of its raw milk from New Zealand.

The company will spend 950 million yuan on acquiring land and building the plant, and a further 150 million yuan as working capital for a New Zealand subsidiary.

The local unit, Yashili New Zealand Dairy Co, was incorporated in July last year according to Companies Office records and has entered into a conditional agreement to buy land where the facility will operate. The acquisition is subject to certain conditions, including approval from the Overseas Investment Office.

The investment comes a month after China's Inner Mongolia Yili Industrial Group flagged plans to spend some $214 million buying and upgrading Oceania Dairy Group's South Canterbury milk powder plant.

Chinese investment in New Zealand has been a heated topic in recent years after bids to buy large tracts of farm-land forced the government to announce a U-turn on its plans to free up overseas investment and a High Court ruling made the OIO impose a more rigorous analysis of foreign purchases.

Yashili was set up by brothers Zhang Lidian and Zhang Likun in 1998 and is ultimately controlled by the Zhang family. US private equity firm Carlyle Group bought a stake in the Chinese company in 2009 to ramp up its research and production, and raised HK$2.7 billion when it floated a minority share in Hong Kong the following year.

The shares gained 0.4 percent to HK$2.38 in trading yesterday, and have almost doubled in the past 12 months.

Chairman Zhang Lidian is on the Chinese committee of the International Dairy Federation, and serves as a representative for the Guangdong province in the National People's Congress, according to Yashili's website.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Port To Recapture Gas: Union Calls On Ports To Stop Spewing Methyl Bromide

The Maritime Union of New Zealand welcomes the decision by Ports of Auckland to stop releasing methyl bromide emissions into the air. The move to fully recapture the toxic gas after fumigation sets a new benchmark for industry best practice. More>>

ALSO:

Retail: Banks Shoes Calls In Receiver

Banks Group, which runs 14 stores across the country under the brands including Banks Shoes and Shoe Connection, has been tipped into receivership at the request of director John Bank. More>>

ALSO:

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO: