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McDonald's Has New Copartner in South China Province
Beijing Sanyuan Foods Ltd, a key dairy products provider in China, has taken the place of McDonald's former business copartner in Guangdong Province, south China, establishing a new food venture in this provincial capital Friday.
The Guangzhou International Trust & Investment Corp. (GITIC) had reported eight consecutive years of losses since it began to cooperate with McDonald's in 1992.
After purchasing all the stock rights owned by GITIC, for 9.9 million U.S. dollars, Sanyuan became McDonald's new partner in Guangzhou's fast food market.
Sanyuan has a history of 45 years in China's dairy sector, with an annual business income of 1.5 billion yuan (about 181 million U. S. dollars). It was McDonald's first business collaborator in China, as they set up a fast food restaurant in 1990 in Beijing.
Sanyuan and McDonald's have jointly opened more than 100 chain restaurants in China, accounting for one third of McDonald's total chain stores in the country.
The new firm is planning to expand its business in Guangdong's market by increasing the present 40 food stores to over 100.
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