Nestle to Sell Dairy Factory in Hulunbuir

Food and beverage firm's Inner Mongolia unit may be transferred to Ningxia Saishang

Switzerland-based Nestle SA, the world's largest food and beverage company, is planning to sell one of its dairy factories in China to a third party, according to an industry insider, as part of the company's efforts to reduce its local output of raw milk powder.

The company plans to dispose its factory in Hulunbuir, the Inner Mongolia autonomous region. It is the 22nd factory set up by Nestle in China and its fourth dairy manufacturing sites in the country. The other three factories produce end dairy products for consumers. The Hulunbuir unit collects milk from local farmers and converts it to raw milk powder.