July 29, 2005

China starts US$43-million dairy processing base

China has started a RMB350-million (US$43.2 million) dairy processing base in North China's Inner Mongolia Autonomous Region capital, Huhhot.

Covering an area of 20,000 square metres in the Jinchuan Development Zone, the production base was built by China's largest dairy products group, Yili Group, and has a daily production capacity of 1,500 tonnes of fresh milk.

All equipment for its 18 liquefied milk production lines comes from Germany, Sweden and Denmark.

Yili Group's profits reached US$46.76 million last year. In the first three months of 2005, it has already earned profits of US$14.31million. Its main operating turnover is expected to reach US$1.23 billion for the whole of 2005.