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


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


(Reporting by Adam Jourdan; Editing by Subhranshu Sahu)