August 29, 2005

China Mengniu Dairy to start joint venture with Denmark's Arla Foods
 

China Mengniu Dairy Co., the country's largest milk producer, said it had signed a joint venture agreement with Denmark's Arla Foods to produce milk powder.

With effect from October 1, 2005, Mengniu would own 51 percent of the venture, which would have a registered capital of RMB180 million. Total investment would be RMB540 million.

The company said Arla Foods had strong technological know-how for milk powder production. Arla currently ranks first and second in the European dairy products and global dairy market respectively.

Mengniu expressed confidence that the joint venture would help it capture share in China's high-end milk powder market, and further improve product quality.