China milk makers to get state support
Chinese milk powder makers, including Inner Mongolia Yili Industrial Group Company Limited and China Mengniu Dairy Company Limited, are set to get 30 billion yuan in official funds to support sector consolidation, media said.
Reuters reported that as well as Yili and Mengniu, the first group of firms to benefit would include Feihe International Incorporated, Heilongjiang Wondersun Dairy Company Limited and Treasure of Plateau, the official China Business Journal said in its Saturday edition, citing an unidentified source.
Authorities have said they want to consolidate the domestic milk powder sector to increase the ability of companies to compete with international rivals who dominate the lucrative premium end of China’s $12.4bn infant formula market.
Officials at Yili, Mengniu and Feihe were not immediately available for comment.
Chinese milk powder firms would gain the support in the form of government subsidies, funds from China Development Bank and favorable tax policies, the China Business Journal said. The total amount would be about 30 billion yuan, it said.
Reuters reported that as well as Yili and Mengniu, the first group of firms to benefit would include Feihe International Incorporated, Heilongjiang Wondersun Dairy Company Limited and Treasure of Plateau, the official China Business Journal said in its Saturday edition, citing an unidentified source.
Authorities have said they want to consolidate the domestic milk powder sector to increase the ability of companies to compete with international rivals who dominate the lucrative premium end of China’s $12.4bn infant formula market.
Officials at Yili, Mengniu and Feihe were not immediately available for comment.
Chinese milk powder firms would gain the support in the form of government subsidies, funds from China Development Bank and favorable tax policies, the China Business Journal said. The total amount would be about 30 billion yuan, it said.
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