US milk factory taken over by Chinese producer
CHINA –, Beijing Sanyuan Foods, a major domestic dairy foods manufacturer, has taken the industry by surprise by acquiring the Beijing-based milk factory of US dairy giant Kraft. Analysts say it is unusual for a foreign brand name to be bought by a local enterprise.
The deal, believed to be worth US$9.3 million (9.9m euro), makes Sanyuan the outright owner of Beijing Kraft Food Corporation and increases its overall annual production by 100,000 tonnes. Under the terms of the deal, the company will continue to use the Kraft brand name.
Sanyuan produces a variety of dairy products including milk powder, yogurt, cheese and fresh milk. Last year, the company achieved sales of 102 million euro.
Nobody from Kraft was available for comment.
