Chinese dairy giant Yashili celebrates start of NZ chapter

Yashili New Zealand Dairy Co., Ltd
Media release
Strictly embargoed until 3:30pm, 6 November 2015

Chinese dairy giant Yashili celebrates the start of a
New Zealand chapter

Prime Minister John Key opens manufacturing plant in Pokeno

Yashili New Zealand Dairy Co., Ltd today celebrated the opening of its state-of-the-art manufacturing plant in Pokeno, which will produce premium quality infant formula under the brand ‘Super Alpha-Golden Stage Infant Formula’.

Yashili New Zealand is one of the leading producers of infant milk formula for the domestic market in China. It was founded in July 2012 and is a subsidiary of Yashili International Holdings Ltd. and Mengniu Dairy Co., Ltd. After 3 years of construction and a $220 million NZD investment the plant aims to help Yashili achieve two simple goals; to produce the highest quality infant formula and raise the healthiest babies in China.

The opening ceremony took place at Yashili New Zealand’s brand new Pokeno facilities and was attended by Prime Minister John Key, China’s Ambassador to New Zealand Mr Wang Lutong, Consul-General of China in Auckland Mr Niu Qingbao, CEO of China Mengniu Dairy Co., Ltd and Chairman of Yashili International Holdings Ltd Ms Sun Yiping, President of Yashili International Holdings Ltd, Mr Lu Minfang, and representatives from local iwi and the community.

China’s infant formula market is expected to grow to $32 billion NZD by 2017, according to Euromonitor data, and the establishment of Yashili New Zealand begins a new chapter of Chinese offshore infrastructure development, says CEO of China Mengniu Dairy Co., Ltd and Chairman of Yashili International Holdings Ltd, Ms Sun Yiping.

“With ever-increasing levels of urbanisation, and an increase in consumer demand for dairy products, China is the fastest growing dairy market in the world. The Mengniu-Yashili plant is creating an elite team based in New Zealand to embody a blending of cultures with an international vision and integrated ability,” says Ms Sun.

With food safety the utmost priority, the production plant was designed to operate under strict quality controls and testing will be conducted by AsureQuality. The plant was designed and constructed with the help of New Zealand-based companies Babbage Consultants, EBERT Construction, Powder Projects Ltd and GEA Process.

The plan boasts globally best-in-class facilities, utilising the latest technology and the finest automatic control systems. Temperature and humidity will be controlled around the clock, guaranteeing stable production and ensuring reliable product quality. The quality is reinforced by the clean green reputation of New Zealand and its dairy industry, giving added consumer confidence.

“New Zealand was chosen because the air and water is among the purest on earth and the dairy industry is world-leading. We see this new plant as a symbol of the 21st Century Maritime Silk Road, promising brighter prospects for both China and New Zealand through comprehensive cooperation,” says Ms Sun.

Yashili International has purchased milk powder from New Zealand for more than 10 years and has used New Zealand milk powder exclusively in its infant milk formula since August 2010. The creation of the new Yashili New Zealand plant adds further value to its product with the specialist Kiwi expertise in dairy production.

The 30,000m2 plant will employ 85 staff and have an annual production capacity of around 52,000 tonnes of formula product. The plant’s location is optimal for logistics and transportation of product. Pokeno is strategically located on the main highway within the golden triangle formed by Auckland, Hamilton and Tauranga. Shipments to China are expected to begin in early 2016.

ENDS

About Yashili

• Established in 1983, Yashili sells its products via around 1500 regional distributers which further distribute its products to more than 105,000 retail outlets in mainland China.

• Yashili New Zealand Dairy Co., Ltd is a subsidiary of Yashili International Holdings Ltd. and Mengniu Dairy Co., Ltd.

• The plant represents a $220 million NZD investment to produce high quality infant formula for the Chinese domestic market.

• The Yashili New Zealand Dairy Co., Ltd plant at Pokeno is located in the newly created Gateway Business Park, adjacent to Pokeno Village. Nestled at the foot of the Bombay Hills and protected by the surrounding terrain, Pokeno is strategically located on the main trunk railway at the crossroads of state highway 1 and 2.

• The plant will feature a permanent Visitor Centre where school parties and tourists can see first-hand the production process from grazing and milk supply through to canning.

• For more information about Yashili New Zealand, visit www.yashili.co.nz

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