Mengniu Dairy Group has put into operation their second phase factory in Baoding and their new factory in Hengshui on August 22. That morning, Zhang Qingli, party secretary of Hebei province, and Zhang Qingwei, governor of Hebei province, met with Ning Gaoning’s delegation. Zhao Yong, the deputy party secretary of Hebei province attended the inauguration ceremony and delivered a speech. Xu Bo, the president of COFCO and chairman of Mengniu Dairy Group, and Sun Yiping also attended the ceremony.

Mengniu Dairy Group’s second phase factory in Baoding is the company’s first PET program. The new factory in Hengshui is the first "factory and pasture integrated demonstration program" that Mengniu has initiated. The total investment of the two factories reached almost 2.4 billion (4,378 million dollars) with a daily production capacity designed for 2,000 tons.

Zhao Yong said, “The operation of the two factories marks a new chapter for the cooperation between COFCO, Mengniu Daily Group and Hebei province. First, we should cooperate in a broader way. Hebei is adjacent to Beijing and Tianjin, so it boasts low production and business cost in addition to abundant human resources. We should strive for more high-end products and occupy greater share in the high-end markets of Beijing and Tianjin. Second, we should cooperate in building a fully integrated agricultural value chain and improving the value of agricultural products. Third, we should cooperate in building a new development model for modern agriculture.”

Ning Gaoning, the chairman of COFCO, said, “Hebei is an important R&D and production base for Mengniu Dairy Group and plays a significant role in the development of Mengniu. The operation of the two factories is just the beginning. Mengniu Dairy Group will continue to cooperate with Hebei closely.”