Ontario government investing $24m in Feihe formula plant

By Jim Cornall contact

- Last updated on GMT

Feihe Dairy chairman Leng Youbin at the China Dairy Industry Association conference. Pic: Feihe
Feihe Dairy chairman Leng Youbin at the China Dairy Industry Association conference. Pic: Feihe
The government of the Canadian province of Ontario is supporting a subsidiary of Feihe International to establish the company’s first facility outside of China.

The infant formula production plant, in Kingston, will create up to 277 new jobs in the community.

Ontario is investing up to C$24m (US$18.8m) in Canada Royal Milk ULC, a subsidiary of Feihe International, which is investing more than C$225m (US$176m) in the project.

Once operational in 2020, the plant will require significant volumes of milk, which will also support the growth of Ontario's dairy cow and goat sectors.

Creating 40,000 jobs

The Ontario portion of the funding will be made available through the province’s Jobs and Prosperity Fund – Food and Beverage Growth Fund.

The fund supports food, beverage and bio-product manufacturing projects that help create and retain jobs, increase domestic and export market access and enhance innovation and productivity.

Since 2013, the Jobs and Prosperity Fund has invested more than C$650m (US$508m) in more than 30 projects, leveraging in excess of C$6.8bn (US$5.3bn) in private sector investment, which is helping to create and retain around 40,000 jobs.

47°N

Ontario Premier Kathleen Wynne met with Feihe International on November 25, 2017 in Beijing to discuss the company's plans.

Leng Youbin, chairman, Feihe International, said he looked forward to what he called the “historic project,” noting that with more than 55 years of history, Feihe International is China’s largest domestic infant formula company.

“I want to thank Ontario for their support,”​ Leng said.

“Ontario and Qigihar, Heilongjiang, where Feihe’s milk resources are located, are both situated in the World’s Golden Milk Belt at 47 degrees north latitude, where its natural environment is the most ideal place for producing premium quality dairy products.”

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