(Yicai) July 31 -- Royal FrieslandCampina, one of the world's largest dairy companies, needs to find a new business leader to keep growing despite a shrinking infant formula market in China after Grace Chen, president of the Dutch firm's China arm, resigned.

Harvey Uong, the global president of specialized nutrition, will temporarily oversee the business until a new China chief is appointed, the local division of the Amersfoort-headquartered owner of brands Dutch Lady, Frico, and Yazoo announced yesterday.

Chen is seeking new career development opportunities outside the Dutch cooperative, leaving on Aug. 15, the company said without disclosing her next destination.

Yicai learned from industry insiders close to FrieslandCampina China that Chen would be joining the local operations of another well-known international giant of fast-moving consumer goods. That firm could be Unilever since Chen's former boss, Hein Schumacher, is currently the global chief executive of the London-based owner of brands Knorr, Dove, and Axe. He is hoping to bring Chen in to improve Unilever's performance, insiders said. But FrieslandCampina has not confirmed the claim.

This would not be the first time Chen followed Schumacher as she joined FrieslandCampina in June 2019 as its China head when Schumacher was the global CEO of the company. That explains why rumors of Chen's imminent departure were circulating after Schumacher left for Unilever last year.

Dairy companies are adjusting their businesses in China amid the declining birth rate and shrinking market. Last year, the size of the infant formula market decreased by more than 13 percent. However, due to FrieslandCampina's advantages in product performance and effective management strategies, the firm achieved double-digit growth for the fourth straight year last year, becoming one of the few foreign sellers of baby formula to consistently expand sales in recent years. Its infant nutrition brand Friso ranks third in market share in China, according to data from NielsenIQ.

China is one of FrieslandCampina's most important overseas markets. After becoming the firm's global CEO last year, Jan Derck van Karnebeek chose China for his first visit. In response to rumors of an asset sale, van Karnebeek said earlier that the firm's China business is not for sale and that the company would further increase its local investment in the future.

Editors: Tang Shihua, Emmi Laine