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Construction begins in China

The new milk powder factory, which is currently under construction, will quadruple Mengniu Arla's production capacity in China. The factory will be commissioned in the summer of 2008.

"The new plant will be of a very high technological standard along the same lines as Arinco in Denmark and Vimmerby in Sweden," says Ulrik Sletten, Mengniu Arla's Production Director. "Our big challenge now is to keep to the timetable. Bearing in mind the extremely cold winters, the building itself must be completed before November."

The factory is being built adjacent to the current plant outside Hohhot in Inner Mongolia. Construction costs total approximately USD 40 million and the new factory will quadruple the annual production capacity from 8,000 to 30,000 tons. Covering an area of 11,000 sq.m., the new factory is set to become China's largest and most advanced milk powder plant.

Facts

  • Mengniu Arla is a joint venture between Arla Foods and Mengniu, China's leading dairy company.
  • Mengniu Arla markets added value milk powder in retail packs.
  • The investment in the new factory follows the successful launch of Mengniu Arla in 2006.
  • Employees: 800 of whom 250 work in production.

...and the removal van has left for Beijing

Mengniu Arla sets up administrative base in China's capital.		  

"We've moved here because we want to be closer to the market," says Managing Director Jais Valeur, Mengniu Arla. "It's also easier to recruit qualified sales and marketing staff here in Beijing."

The Sales and Marketing Department was previously based at Mengniu Arla's milk powder factory in Inner Mongolia. The new premises, home to both departments and the company's administration, now occupies a floor in an office block owned by Arla Foods' partner, Mengniu, in Eastern Beijing. Of the 55 staff, 40 have relocated from Inner Mongolia.

"I'm pleased that so many of our talented staff decided to come with us to Beijing," says Jais Valeur. "I myself have moved several times during my working life and am well aware what a difficult decision it is."

Mengniu Arla has operated four sales centres in southern and central China for some time - also with the aim of being close to the market. So far this year, Mengniu Arla has recruited 250 new staff, mainly for its sales organisation. The company employs 800 in total of whom 250 work in production

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Covering an area of 11,000 sq.m., the new factory is set to become China's largest and most advanced milk powder plant

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