FrieslandCampina, the Dutch dairy main, has offloaded a plant in China to native peer Interior Mongolia Yili Industrial Group.
The deal entails an infant-formula manufacturing facility in Xiushui. The proposed transaction consists of all the manufacturing web site. All 270 workers will proceed to work on the manufacturing facility after the sale, which is predicted to be accomplished earlier than the tip of the yr.
FrieslandCampina stated the deal was a part of its technique to centre its infant-formula enterprise in China on its Friso model.
“Xiushui is designed for toddler diet manufacturing and is especially producing non-dairy creamers whereas making ready for the longer term progress of the Zi Mu model. Zi Mu is an area toddler diet model,” a spokesperson for FrieslandCampina defined.
“The envisaged divestment follows FrieslandCampina’s announcement final month that its specialised diet enterprise will concentrate on the Friso model, innovation within the premium section and additional digitalisation.”
The spokesperson added: “FrieslandCampina’s toddler components technique in Better China stays centered on constructing its profitable Friso model via a robust innovation pipeline, additional premiumisation and increasing in lower-tier cities.”
Earlier than Christmas, FrieslandCampina confirmed it was weighing up the way forward for its infant-nutrition enterprise Friso.
Earlier this week, the group reported its first-half monetary outcomes.
Income rose by a fifth to EUR6.6bn (US$6.75bn). The corporate pointed to cost will increase, excessive commodity dairy costs and the restoration of the European foodservice market from the depths of the pandemic.
The co-op’s working revenue stood at EUR328m, up from EUR130m a yr earlier. Web revenue greater than doubled to EUR139m “resulting from greater commodity dairy costs and the restoration in toddler diet actions”, FrieslandCampina stated.
In the meantime, elsewhere in Asia, the co-op has introduced the closure of a milk manufacturing facility in Thailand.
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