May 15, 2008

China's sanlu dairy mergers with two companies

Sanlu Dairy announced that it has merged with Heilongjiang province's Jiamusi Shuoye Dairy and Mudanjiang Shuoye Dairy and now holds a 51-percent stake in each of the two companies.

The company considers the recent merge to provide good foundation for expansion activities specifically in Northeast China.

Sanlu's low-temperature milk product supply has already fallen short of demand, even though the peak sales season has not come yet.

Due to robust demand, the company said it would focus on expanding the markets in other provinces, increasing production capacity and alleviating the pressure of low production capacity this year.