COFCO CEO becomes chairman of Mengniu Dairy

Yu Xubo, CEO of China National Oils, Foodstuffs and Cereals Corp. (COFCO), replaced Niu Gensheng to become chairman of the Inner Mongolia subsidiary of Mengniu Dairy Company Limited. Mengniu recently completed its reshuffling of the board of directors after COFCO injected HK$6.1 billion in July. Niu was transferred to the chairman of board of directors of Mengniu Diary.

The Inner Mongolia subsidiary was the main asset of Mengniu Dairy before it was publicly listed and was one of the most important subsidiaries of Mengniu Dairy. It specialized in sales of dairy products including liquid milk and ice cream.

Analysts said this move siginals COFCO's formal entry into Mengniu Dairy because Niu established Mengniu in Inner Mongolia.

But Mengniu Dairy said that Niu's transfer means he will be responsible for the corporation’s operating strategy. Yang Wenjun, CEO of Mengniu Diary and the Inner Mongolia subsidiary will be in charge of the detailed operation.

Yu's appointment will facilitate further cooperation between Mengniu and COFCO.

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