Sanyuan Foods to invest RMB 680 mln in milk processing park

Published: 18 Jun 2009 18:20:58 PST

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Jun. 19, 2009 (China Knowledge) - Beijing Sanyuan Foods Co Ltd<600429> plans to invest a total of RMB 680 million to build a milk processing park in Daxing District in Beijing, the capital city of China.

The firm said in a statement filed with the Shanghai Stock Exchange yesterday that it has obtained the board's approval for the project, which is designed with a daily milk processing capacity of 12 million tons.

The project, which is estimated to be completed in two phases within 18 months, will be funded by the company's internal sources and bank loans.

In the same statement, the firm announced it will set up a subsidiary in Shanghai in a bid to expand its business in eastern China. The proposed subsidiary will have a registered capital of RMB 3 million.

Last month, Beijing Sanyuan Foods won the bidding for the core assets of Sanlu Group, a milk enterprise that went bankrupt due to a milk scandal last year.

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