HOHHOT -- Construction for a large-scale dairy production and processing facility kicked off in North China's Inner Mongolia autonomous region on Saturday.

The high-end milk production complex, capable of raising 100,000 cows, will cover an area of about 867 hectares in Bayannur city, with an investment of 4 billion yuan (about $620 million).

After completion, the complex is expected to produce 550,000 tons of fresh milk annually and hike up incomes of about 40,000 herdsmen and farmers in the region, said Zhao Jiejun, vice president of Mengniu Dairy headquartered in the regional capital Hohhot that is cooperating with the local government to carry out the project.

Inner Mongolia now produces over 5.7 million tons of milk each year, with the largest market share for dairy products in China.