Mengniu Dairy Wuhan Co., Ltd. was established on January 8, 2006. China's dairy industry leader—Inner Mongolia Mengniu Dairy (Group) Co., Ltd. entered Wuhan with a cumulative investment of 780 million RMB to establish a large-scale dairy production and processing enterprise. In March 2007, Mengniu fully acquired Youzhiyou, and Hubei Youzhiyou Dairy Co., Ltd. was transformed into a wholly-owned subsidiary of Mengniu. Since its establishment, the company has continuously increased investment and expanded scale to meet market demand. In 2006, the first phase of the production base, with a total investment of 180 million RMB, introduced international high-end production equipment and processes, processing over 400 tons of fresh milk per day, and was hailed as a "domestic first-class dairy production base." In April 2006, the second phase project broke ground with a total investment of 290 million RMB and was completed and put into operation in early November 2006. The first and second phases formed a daily processing capacity of 1,200 tons. It is currently a leading enterprise in the dairy industry.
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