Wellington, April 3 NZPA - There has been a leadership change in Fonterra's Chinese business.

The New Zealand dairy co-operative today named Philip Turner as it new managing director, China and said that China remained an important market for it.

Fonterra poured nearly $200 million into its Sanlu joint venture in China since buying a 43 percent stake in December 2005, but the investment was gutted by the poisonous infant formula scandal.

Mr Turner takes over from Bob Major, who was a director on the Sanlu board. He will retire after the conclusion of his contract at the end of May 2009.

Fonterra today paid tribute to Mr Major's service to the New Zealand dairy industry over 28 years, without referring to the Sanlu scandal.

Fonterra managing director Asia and Middle East, Mark Wilson, said Mr Major had done an outstanding job managing the China business over the past five years.

Mr Turner has been the chief operating officer of Fonterra China since late last year.

He has recently held senior executive roles in Fonterra's global dairy trade business, based in Tokyo.

Fonterra is the world's largest dairy exporter, with annual revenues of about $17 billion.

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