September 12, 2007

China's Mengniu considers overseas production plant

China's dairy and milk producer Mengniu has plans to build production facilities in foreign countries where the company has a strong market presence.

During his attendance at the World Economic Forum held in Dalian last week, Mengniu's director Yang Wenjun said his company has targeted income from overseas' sales to exceed RMB500 million in the next five years. To achieve this, taking plants closer to the market may be a necessary move.

Yang also added that Mengniu will continue to seek organic growth, ruling out possibilities of any moves to acquire other milk companies in the near term.

According to statistics provided by the company, Mengniu stated that it is China's largest dairy and milk exporter. The Inner Mongolia-based company has a 50 percent share of the market in Hong Kong and Macau. The company will start to market its milk products to Russian consumers in October.