Wakodo Co. Ltd., a Japanese milk powder producer controlled by Asahi Group Holdings Ltd., plans to cooperate with Taiwan-based food and drink maker Tingyi (Cayman Islands) Holding Corp. (00322.HK), also known as Master Kong, to expand in the Chinese market, Beijing Business Today reported Thursday, citing an unnamed person with knowledge of the matter. The cooperation could result in the Japanese firm producing its milk powder products in China, it said. Both companies confirmed that they have reached an agreement to set up a joint venture in Shanghai, which will begin operations early next year, the paper said. Some industry insiders believe Wakodo may try to fill the void left by another Japanese milk powder maker Meiji Co. Ltd., which said last week that it will temporarily withdraw from the Chinese market, the report said.
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