March 29, 2017 / 8:33 AM / 8 months ago

FrieslandCampina says China JV with Huishan Dairy operational

SHANGHAI, March 29 (Reuters) - Dutch dairy Royal FrieslandCampina N.V. said on Wednesday a joint venture with embattled China Huishan Dairy Holdings Co Ltd remained operational but that it was “closely monitoring” the situation after Huishan Dairy saw its shares plummet over financing concerns.

Huishan Dairy, one of the top dairy farmers in China that saw $4 billion wiped off its shares in a single day last week, said on Tuesday that it had missed loan repayments and lost contact with a key executive in charge of its finances and cash.

“FrieslandCampina is closely monitoring the situation and will, if necessary, take appropriate action to ensure successful continuation of the joint venture’s activities in the Chinese market,” the Dutch firm said in a statement on its website.

It said the joint venture, Friesland Huishan Dairy, remained operational and that the firm was focused on ensuring continuity for employees, customers and suppliers.

Huishan Dairy and FrieslandCampina each own 50 percent of the joint venture firm which produces and markets infant milk formula and other dairy products in China.

Huishan Dairy’s Hong Kong-listed shares are currently suspended. (Reporting by Adam Jourdan; Editing by Subhranshu Sahu)

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