By partnering with foreign dairy entities Yili is strengthening its position in the Chinese dairy sector and gaining consumer trust. Chinese dairy company Yili has formed a strategic partnership with Sterilgarda Alimenti SpA of Italy. Sterilgarda is a specialist in filter membrane technology that removes harmful bacteria and impurities and uses low-temperature sterilization which maintains the nutritional integrity of the milk and which allows milk to stay fresh for four to eight months without preservatives. The joint venture will likely form its own brand of liquid milk which will be sold on the high-end Chinese dairy market. Yili has also previously entered into a joint venture with U.S-based Dairy Farmers of America Inc., the largest dairy organization in America, for procuring raw materials and managing dairy farms, and has plans to invest $50 million in China Huishan Dairy Holdings Co. to secure further supply. Earlier in 2013 Yili dedicated 1.1 billion yuan to build up an infant dairy product base in New Zealand which will market products in China.
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