-Yili Group's First Self-Built Factory in Southeast Asia Is Put into Operation, 
Forming A "Dual Center" in Indonesia and Thailand

-Yili Group strengthens its presence in Southeast Asian markets by launching 
its first self-built factory in the region. 
-Featuring cutting-edge technology, green operations, and deep involvement with 
the local community, the project aims to accelerate dairy manufacturing and 
innovation to better serve Indonesian consumers.

Asia's leading dairy producer, Yili Group, held an opening ceremony to 
celebrate the official launch of the first phase of the Yili Indonesia Dairy 
Production Base. Upon completion of its second phase, the production base will 
become the country's largest ice cream factory with a daily production capacity 
of four million ice cream products.

The state-of-the-art facility was established due to the surging popularity of 
Joyday ice cream, a brand that has rapidly expanded its reach to 260 local 
cities in 26 provinces, covering nearly all of Indonesia, since its entry into 
the market in 2018. 

"Local consumers' clear preference for and trust in our products has reinforced 
Yili's confidence about our long-term investment and development in Indonesia," 
said Pan Gang, the Chairman and President of Yili Group, in a virtual speech 
delivered at the ceremony. "Yili is always dedicated to following the highest 
standards to drive quality, sustainable development over the long term and 
establishing localized operations that benefit the communities where we 
operate. This ensures that we can better serve local consumers and make deep 
contributions to socio-economic development throughout the region." 

Catering to local needs while leveraging the global resources brought together 
by Yili Group, the Indonesia-based hub aims to speed up Joyday's product 
manufacturing, R&D and marketing efforts, with more new products to come, in 
order to bring more unique services and consumer experiences to local 
customers.  

An innovative, green, and open factory

As Yili's first self-built plant in Southeast Asia, Yili Indonesia Dairy has 
adopted cutting-edge technology and equipment, including the Internet of Things 
and big data analytics, to build an innovative and smart factory. The 
production base integrates advanced digital technologies throughout its entire 
production chain. Robotics solutions are introduced to provide automated 
packing, palletizing, and warehousing.

The construction of infrastructure and buildings has been undertaken strictly 
in line with Yili Group's global quality management standards. To date, the 
factory has already passed the ISO22000, HALAL, and BPOM certifications and 
been rated A grade by LPPOM MUI, the largest food and drug certification agency 
in Indonesia. 

As part of its efforts to build a sustainable and environmentally friendly 
production facility, Yili Indonesia Dairy has built a wastewater treatment 
system with a daily treatment capacity of 2,800 tons. Reclaimed water is then 
used for the irrigation of plants in the factory.

To ensure high levels of visibility and transparency, the site will be open to 
the public whenever the factory is in full operation, and consumers can watch 
the whole production process as it unfolds. 

Ready to grow together with local partners

While deepening its presence in global markets, Yili follows the principle of 
"global mindsets and local operations," with a focus on building highly 
localized factories that benefit local communities. 

Today, Yili Indonesia Dairy has a total of 383 employees, with local employees 
accounting for 95% of the workforce. The project is expected to create more 
than 5,000 new jobs for local communities, directly and indirectly. 

Yili Indonesia Dairy is also actively pursuing further opportunities for 
cooperation with local partners. To date, the company has already established 
cooperative relationships with more than 90 suppliers in Indonesia. Moving 
forward, its partnerships will expand to local distributors with 200,000 sales 
outlets. Yili is also dedicated to promoting the highly rated Indonesian 
flavors to global consumers through its worldwide marketing channels. 

Yili's "Southeast Asia dual centers" established

The completion of Yili Indonesia Dairy sets up another key pillar for Yili's 
development in the Indonesian and the broader Southeast Asian markets. Together 
with the company's Thailand-based ice cream production base, Yili's "Southeast 
Asian dual centers" and Southeast Asia Innovation Center have taken shape, and 
are expected to accelerate product manufacturing and R&D in the region. 

As a platform designed to facilitate cooperation on innovation with 
universities and R&D institutions throughout the region, the Yili Southeast 
Asia Innovation Center will also work together closely with Yili's innovation 
centers spread across China, Japan, Europe and Oceania, with the aim of rolling 
out more localized innovation solutions that are carefully tailored to fulfill 
consumer needs.

In the pursuit of building a "global health ecosystem", Yili Group has been 
dedicated to reaching markets where consumers' demands for quality dairy 
products have yet to be fulfilled. As an important base facilitating Yili's 
engagement with global markets, Yili Indonesia Dairy will coordinate and share 
resources with other subsidiaries of Yili Group to serve consumers with 
world-class products and share its business success with partners.

Source: Yili Group

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   Caption: Yili Indonesia Dairy Production Base