Chinese milk powder and dairy products producer Feihe International will receive an investment of CAD$25 million, or about $19.5, from Ontario’s provincial government to support the firm’s new infant formula plant under construction in Kingston, ON, the provincial Ministry of Agriculture, Food and Rural Affairs announced in a press release Monday.
The funds from the province’s Jobs and Prosperity Fund will go toward the purchase of processing and packaging equipment for the site, according to the release. Planned to become operational in 2020, the project will create an estimated 277 new jobs in the area.
Operated under a Canadian subsidiary, Canada Royal Milk ULC, the Kingston facility will be Feihe’s first infant formula plant outside of China. The company’s new site is also expected to be a boon for dairy farmers near the plant.
Feihe International, which operates six manufacturing plants in China, invested some $230 million into the effort, according to a report by state-run Chinese news organization Xinhua.