China Mengniu Dairy Company Limited and its subsidiaries announced here Monday that it will form joint ventures with Groupe Danone of France to manufacture, develop, distribute and sell yogurt products.

According to the agreement, Mengniu will hold 51 percent interest in the joint ventures and Danone will own 49 percent.

President of inner Mengniu Dairy (Group) Company Limited Yang Wenjun said that the product of quality yogurt products requires solid technological expertise as well as research and development support and Danone possesses the most advanced technology in these areas.

"The strong support from Danone will not only strengthen the joint ventures' competitive advantages, but will also contribute to technological advancement of the dairy industry in China," said Yang.

President of Danone for Asia-Pacific Region Pierre Couderc said that the cooperation is important to both parties. Over the past three years, Mengniu has built itself into a leading diary product manufacturer in China while Danone is the world's leading yogurt producer with powerful technological expertise in yogurt processing.

"The cooperation presents an excellent opportunity for both parties to work together in developing and growing the China dairy market," said Couderc.

Source: Xinhua