Privatisation afoot in China

China Peregrine Food Corporation is set to acquire a controlling interest in four state-owned dairy and beverage processing facilities in China.
The factories concerned are located in heavily populated urban areas. Collective sales for 1998 are reported to be US$21.5 million, with net profit standing at US$1.3 million.
Operating through joint ventures, China Peregrine will provide capital, production technology and marketing expertise to expand the businesses by introducing branded health-oriented products.
The company already manufactures dairy products at sites in Shanghai and Hangzhou and is now positioned to expand rapidly.
Privatisation of state-owned enterprises has been encouraged by recent government reforms in China designed to update the countrys production capabilities.