Mengniu, Arla to develop dairy products in China

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China Mengniu Dairy Co Ltd , the country's biggest maker of dairy products, said on Tuesday that it will join forces with Danish-Swedish dairy group Arla Foods to develop dairy products in China.

Chief Executive Sun Yiping told a conference call on Tuesday that Mengniu and Arla would jointly research product development technology for cheese, butter and milk powder products.

Arla said on Friday that it would buy an about 6 percent stake in China Mengniu from private equity fund Hopu for 1.7 billion Danish crowns ($289 million).

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