FrieslandCampina, the Dutch dairy major, has offloaded a plant in China to local peer Inner Mongolia Yili Industrial Group.
The deal involves an infant-formula factory in Xiushui. The proposed transaction includes the entire production site. All 270 employees will continue to work at the factory after the sale, which is expected to be completed before the end of the year.
FrieslandCampina said the deal was part of its strategy to centre its infant-formula business in China on its Friso brand.
“Xiushui is designed for infant nutrition production and is mainly producing non-dairy creamers while preparing for the future growth of the Zi Mu brand. Zi Mu is a local infant nutrition brand,” a spokesperson for FrieslandCampina explained.
“The envisaged divestment follows FrieslandCampina’s announcement last month…