China Huishan Dairy Holding, one of China’s largest domestic dairy suppliers, is in joint venture talks with Dutch dairy supplier FreislandCampina to produce and sell infant formula in China. The new business would form a fully integrated supply chain in the country which is currently pushing to consolidate and improve its dairy industry. The two companies currently cooperate to produce non-dairy creamer in the country and would continue to operate their existing infant formula businesses separately. Huishan’s investors include Norges Bank of Norway, China’s milk producer Yili, and Bao Hua Investments, whose investors include COFCO, Louis Dreyfus, Sumitomo Mitsui Banking, and Agricultural Industrial Equity Investment Fund. The financial details of the venture have not been released.
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