Chinese dairy firm plans could mean NZ jobs

Plans by a Chinese dairy firm to invest more than $200 million in building an infant formula plant could mean more jobs in South Canterbury.

The deal would see Inner Mongolia Yili Industrial Group take over Oceania Dairy Group in order to use its land resource consents to build across 38 hectares of land.

Oceania director Don Brash says the takeover would mean more jobs and another buyer for farmers' milk.

The deal is still subject to approval from the Overseas Investment Office and the Chinese Government, but Dr Brash expects it'll go through with no issues.

He says Yili hopes to takeover Oceania early in the new year.

He says unlike other recent investment from China in the New Zealand dairy industry which involved a very large amount of land, this involves a small parcel of land which is really just enough to build the plant on.

Dr Brash says China sees New Zealand as a very important source of dairy and this is an exciting opportunity.

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