New Chinese Crafar bidder makes his case
Mystery millionaire Jiang Zhaobai outlines his plans for the dairy group.
The new leading bidder for the Crafar farms group has filed an application to purchase the dairy conglomerate with the Overseas Investment Office.
Shanghai Pengxin Group said it will invest more than $200 million in purchasing and upgrading the 16 farms.
In a statement announcing the OIO filing, Pengxin said it had formed Milk New Zealand Holdings to manage the purchase. The Hong Kong registered company has as its sole director Pengxin chairman and China rich-lister Jiang Zhaobai.
Milk New Zealand aimed to work with local dairy plants to manufacture products "such as baby food, cheeses and ice creams that will appeal to the fast-growing Chinese and other Asian markets."
Pengxin planned to retain sharemilkers and staff currently running the farms and increase milk production by 10% by the end of the third year of ownership.
Over the first five years the company said it intended to invest more than $100 million marketing its dairy products products.
Company spokesman Cedric Allan said "There are a number of winners under this overall scenario. The country gains significant overseas investment," he said. "New Zealand can benefit from supplying the Asian market for new added-value products."
Matt Nippert
Thu, 14 Apr 2011
Thu, 14 Apr 2011
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New Chinese Crafar bidder makes his case
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