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American Dairy expands production capacity at Gannan and Longjiang facilities
American Dairy Inc – one of the leading producers and distributors of premium infant formula, milk powder and soybean, rice and walnut products in China – today announced that it has entered into an agreement with the GEA Group, Germany.
Under the agreement, GEA has agreed to provide the company with infant formula production equipment, along with the related installations and training, at American Dairy’s Gannan production facility, Flying Crane Dairy Products Co Limited. The company expects the agreement to increase production capacity at Gannan Feihe from 300 tonnes a day to 1,000 tonnes a day by August 2010.
Under the agreement, American Dairy has agreed to make payments totalling approximately $24.6m. The company plans to fund the purchase partially from cash on hand and cash-generated from operations, and partially from existing credit facilities available to the company.
Leng You-Bin, the company’s CEO, said: “We’re glad to continue our partnership with GEA, and ultimately to enhance our Gannan production facility using new equipment in accordance with the current standards of the European Union. We believe the equipment from trusted manufacturers like GEA will better ensure that we continue our rigorous quality standards.”
Source: American Dairy Inc
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