December 19, 2006

China, France dairy companies set up joint venture

China Mengniu Dairy Company Limited and its subsidiaries have formed joint ventures with Groupe Danone of France to manufacture, develop, distribute and sell yoghurt products.

According to the agreement, Mengniu and Danone would hold 51 and 49 percent interest in the joint ventures respectively.

President of inner Mengniu Dairy (Group) Company Limited Yang Wenjun said that the product of quality yoghurt products required solid technological expertise as well as research and development support and Danone possesses the most advanced technology in those areas.

Danone's support would not only strengthen the joint ventures' competitive advantages, but also contribute to technological advancement of the dairy industry in China, he added.

The cooperation was important to both parties. Over the past three years, Mengniu had built itself into a leading diary product manufacturer in China while Danone was the world's leading yoghurt producer, pointed out president of Danone for Asia-Pacific Region, Pierre Couderc.