June 30, 2006

China's Yili expands dairy operations aggressively through SIG

Swiss liquid packaging group SIG has sold 14 new filling lines to leading Chinese dairy Yili, reflecting the rapid development in China's booming dairy industry. Diary plants usually buy filling lines individually, thus the purchase reflects the breakneck speed and scale of growth in the country's dairy sector.

SIG's Combibloc filling machines are being used in Yili's new Jin Chuan plant in China's Inner Mongolia region, said to be one of the most modern in Asia.

SIG's Combibloc CFA-712 machines have an output of 12,000 aseptic cartons an hour.

Jan Schuermann, head of marketing and business development for the firm's China operations said it was a significant project for the company, adding that in China, the sheer size of growth is driving massive one-off investments.

SIG has supplied more than 30 lines to Yili,

Yili and its competitor, Mengniu have seen rapid growth in recent years; Yili reported sales growth of almost 40 per cent in 2005 to reach US$1.5 billion, while Mengniu said its sales were up 50 per cent last year.

Schuermann says that Yili's plant is one of the most integrated productions sites found in Asia,

SIG made 15 percent of its total EUR1.2 billion (US$1.5 billion) sales in 2005 in China and south-east Asia, an increase from the 12 percent the year before.