A major Chinese dairy company has announced plans to invest a further $400 million in New Zealand dairy projects.
The announcement, on the government-backed China Daily website said projects by the Mongolia-based Yili company would include raw milk processing, the production of UHT, as-well-as milk powder manufacturing and packaging.
The projects would be based at the company's Oceania Dairy site at Waimate, near Timaru, which was formally opened by Prime Minister John Key and Chinese President Xi Jinping on Friday.
The company also announced it would work with Lincoln University on research into product nutrition and quality.
Yili was one of 21 dairy companies implicated in the 2008 baby milk scandal after tests found its infant formula contained melamine, forcing a recall.
The China Daily also noted that China was increasingly the target of dairy exporters in the US, Europe and South America, which it said would challenge the dominance of New Zealand's dairy giant Fonterra.
Prime Minister John Key welcomes Chinese President Xi Jinping to New Zealand. Photo: POOL