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Yili’s Indonesia Production Base Put Into Operation, Chinese Dairies’ Investments in Southeast Asia Reaching New Highs

Time: 2021-10-12 Views: 6173

On December 10th, Yili Group held a launching ceremony for its first self-built factory in Southeast Asia, Yili Indonesia Dairy Production Base (hereinafter referred to as "Yili Indonesia Dairy"). This marks a new milestone for Yili's "global network". The first phase of the project was invested with 867 million yuan, and after the completion of both phases, the factory will be able to produce 4 million ice cream products per day, making it the largest single ice cream factory in Indonesia. It is also the largest production base for Chinese dairy companies in Southeast Asia to date, setting a new record for Chinese dairy companies' investment in Southeast Asia.

The launch ceremony of Yili’s production base in Indonesia.

The Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, attended the production ceremony and unveiled the production base. Pan Gang, Chairman and CEO of Yili Group, delivered a video speech. Representatives from relevant departments of the West Java Province Government, the Indonesian Food and Beverage Association, and the Indonesia-China Chamber of Commerce also attended the ceremony.

Agus congratulated Yili Indonesia Dairy on overcoming the challenges posed by the pandemic and successfully starting production. He said, "Thank you, Mr. Pan Gang, and thank you, Yili, for building such a high-standard production base in Indonesia. Joyday ice cream produced by Yili Indonesia Dairy will meet the growing demand of Indonesian people for dairy products, especially high-quality ice cream products. We also thank Yili for actively participating in Indonesia's school children vaccination program, which has made an important contribution to Indonesia's response to the pandemic."

In his video speech, Pan Gang said, "It is the choice and trust of consumers that has given Yili the confidence to make long-term investments and developments in Indonesia. Yili has always insisted on high standards to lead the creation of quality products, sustainable development for long-term benefits, and local operations for the benefit of the people. We will serve Indonesian consumers better and help the stable development of Indonesia's economy and society."

During the ceremony, Yili also reached a cooperation agreement with the Indonesian vaccine center and will provide support for the construction of the national vaccine center, helping to fight the pandemic. After the unveiling ceremony, guests visited Yili Indonesia Dairy and highly praised the construction of the industrial base. Agus said after tasting Joyday ice cream, "Joyday ice cream, every bite is a surprise!"

Currently, consumer demand is increasingly personalized, diversified, and differentiated. Accurately judging and quickly meeting such demand is a compulsory course for every enterprise to become bigger and stronger. Recently, Yili Group officially announced the "Comprehensive Value Leadership" goal, with "consumer value leadership" at the forefront of its four major strategic goals.

Automated workshop of Yili Indonesia Diary

The automated production workshop of the Yili Indonesia Dairy Production Base has long been dedicated to the pursuit of being a "loyal fan" of consumers, driving Yili's quality to gain more and more recognition and trust in the international market. Yili Joyday ice cream has been launched in Indonesia for only three years, and Joyday's presence can be seen everywhere in supermarkets and convenience stores throughout Indonesia.

"A sweet and refreshing taste of Joyday can help me release stress, generate a happy mood, and I love every flavor!" said a Jakarta citizen who is passionate about Joyday ice cream.

Local Indonesian media also reported that Yili's products are loved by Indonesian consumers due to their quality, unique taste, and vibrant product image.

Tan Lih Ming, the distributor of Joyday ice cream in Bandung, was very excited to learn that Yili Indonesia Dairy had officially started production and operation. He said, "I believe that after the local factory is put into production, there will be more new products suitable for the Indonesian market, and Joyday ice cream will be more and more loved by Indonesian consumers. We look forward to long-term development with Yili to make the Joyday brand the best in the Indonesian market."

In order to better serve consumers in Southeast Asia and create the best product quality, Yili Indonesia Dairy relies on Yili Group's globally leading innovation system, production system, and quality management system to build a more intelligent, innovative, open, green, and localized modern factory, comprehensively promoting the sustainable development of the industry chain.

At the same time, as an important pillar for Yili's "global network", Yili Indonesia Dairy will form a "dual center" radiating Southeast Asia with Yili's Thailand production base, providing more diversified product choices for consumers in Southeast Asia.

High Standard Planning to Build and Expand the Global Health Ecosystem

The "Belt and Road" initiative has provided a broad platform for Chinese enterprises to go global, and Chinese dairy companies have actively explored the path of "Global Mindset and Local Operation".

While building a global health ecosystem, Yili has always adhered to high-level design, high-standard construction, and high-quality production. Yili's Indonesian dairy industry uses world-class technology and equipment, applying cutting-edge IoT and big data technologies to achieve full automation in the production process. Through the "Empowering the local headquarters, Leveraging global collaborations, and Ensuring a high degree of localization" model, Yili has established the Yili Southeast Asia Innovation Center to better meet local consumer needs. It practices a "green industrial chain" development strategy, builds green factories, and saves 1.21 million kWh of electricity and reduces CO2 emissions by more than 8,000 tons each year. Its wastewater is treated for irrigation of plants within the factory area.

As an example, the core refrigeration system of the production base is developed in collaboration with outstanding global refrigeration companies, creating a more efficient and environmentally friendly refrigeration system. "Participating in the construction of Yili's Indonesian dairy industry has helped us expand our international market share and enhance our brand's international influence. The entire process, from design, construction, acceptance, installation to operation, has followed the strictest standards," said the refrigeration system supplier.

Yili Group is fostering a backbone network from a global perspective that covers a global resource system, a global innovation system, and a global market system, from Asia, Europe, America, Oceania, to the expanding Southeast Asian and African markets. The completion and commissioning of Yili's Indonesian dairy industry will further extend the tentacles of this network, strengthen the depth of cooperation between global health ecosystem partners, and provide higher quality products and services to global consumers.

Interpretation of "Comprehensive Value Leadership"

"High-quality development of the 'Belt and Road' initiative is on the way, and China and ASEAN have established a comprehensive strategic partnership. Looking to the future, we will use Yili's Indonesian dairy industry as a carrier to build a bridge for dairy industry cooperation and contribute to the healthy life of the people, as well as the green and sustainable development and prosperity of the two countries' economies and societies," said Pan Gang in his speech, expressing his high hopes for the development of Yili's Indonesian dairy industry.

The proportion of local employees in Yili's Indonesian dairy industry exceeds 95%, and with the construction of the industrial base, it will directly and indirectly create more than 5,000 job opportunities in the future. At the same time, Yili's Indonesian dairy industry has established cooperation with more than 90 local high-quality suppliers in Indonesia, and the proportion of local procurement of raw and auxiliary materials reaches 65%. In terms of expanding market channels, Yili will cooperate with local distributors and plans to cover more than 200,000 sales outlets in Indonesia in the future, as well as promote its products to a broader international market.

Muhamad Irfan, who just joined Yili's Indonesian dairy production department last year as an ordinary employee, was provided with a series of training from production technology, product knowledge, to sales skills by Yili. Within only 9 months, Muhamad was promoted to a team leader. Recently, Muhamad also held his wedding and started a happy family. Muhamad happily said, "I will cherish this hard-won job opportunity and hope that Yili will develop better and better" as Yili's pace of internationalization becomes more stable.

As Yili's internationalization progresses steadily, the "Global Health Ecosystem" constructed by Yili and its global partners is also growing stronger. In Yili's strategic planning, not only does it aim to achieve the goal of "Global Dairy Industry Leader" by 2030, but it also aims to achieve "Comprehensive Value Leadership" and create greater value for consumers, society, employees, and the company. Comprehensive value sharing will surely attract more peers and become a vision that is becoming a reality to become the most trusted provider of healthy food globally.