Jan. 13, 2012 (China Knowledge) - Switzerland-based Nestle SA, the world's leading food and beverage manufacturer, has inked a memorandum of understanding (MOU) to spend RMB 2.5 billion or US$396 million to build China's largest fresh milk supply base in Northeast China's Heilongjiang
Pursuant to the MOU, Nestle will set up a fresh milk base, located in Shuangcheng of Heilongjiang
Province, with 187 milk districts, each of which would have more than 300 cows.
Upon the completion of the project, Nestle's milk annual output capacity in the city would increase by 25% from current 400,000 tons to 500,000 tons.
Excluding the new milk project, the Swiss company has started capacity expansion in Shuangcheng for four times with a total investment increasing from RMB 79 million to RMB 770 million.
Roland Decorvet, Chairman and CEO of Nestle China, said the new milk base would make Shuangcheng the nation's benchmark for high quality and reliable fresh milk.
Shuangcheng, located in southwest area of Heilongjiang
, has more than 20,000 milk farmers and produces 1,200 tons of milk daily, sources reported.