China's dairy giant Yili will invest NZD400 million (US$316 million) in a New Zealand project that is being touted as the "world's largest integrated dairy base."

 

Chinese President Xi Jinping and New Zealand Prime Minister John Key unveiled the project at a ceremony held recently at the dairy base, called the Yili Oceana Production, located in Waimate on New Zealand's South Island.

 

In filings with the Shanghai Stock Exchange (SSE) filings, Yili said it would invest a total of NZD400 million in four projects at the site.

 

A total of NZD201 million (US$158.8) million will be for the construction of a milk powder plant that will have an annual production capacity of 56,000 tonnes, the company said.

 

Yili said it also hoped to "make better use of the advantages of New Zealand's raw milk costs" with a NZD92.4 million (US$93 million) investment in UHT milk.

 

Some NZD40.2 (US$31.7 million) will be invested in the packaging facilities for its infant formula products while another NZD40.2 million (US$31.7 million) will go into a processing project that Yili has yet to identify. But the project is expected to product "more diverse products to meet consumers' nutritional requirements."

 

Yili told the Shanghai Stock Exchange that the New Zealand investments will help improve the company's profitability, enhance its competitiveness, and improve Yili's brand influence."