Japan's Meiji to launch 2nd dairy product plant in China in 2022
TOKYO,NNA - Major Japanese food maker Meiji Holdings Co. will set up its second dairy plant in China, planning to begin production in 2022 as part of its efforts to boost overseas sales capitalizing on the country's growing demand for milk products.
Meiji's Chinese arm, Meiji China Investment Co., established wholly-owned Meiji Dairies (Tianjin) Co. on Tuesday with a capital of 620 million yuan, ($87 million) to build a new milk and yogurt plant in the Tianjin Economic-Technological Development Area in northern China.
The 54,000-square-meter plant is set to begin operations as early as September 2022. Meiji plans to cultivate the northern area currently covered by its first plant in Suzhou in the eastern province of Jiangsu, a Meiji spokesman told NNA on Wednesday. He added the production capacity is yet to be determined.
He said the milk market in China is worth more than 100 billion yuan and growing. Although the segment for chilled milk, Meiji's key product, is relatively small, the firm expects growth as high-income consumers are becoming more health-oriented, demanding that food be safe as well as delicious.
In its medium-term business plan, Meiji is prioritizing China, where it expects to double food sales to 23 billion yen ($212 million) in the fiscal year through March 2021 from the 11.9 billion yen seen in the fiscal year through March 2018. (NNA/Kyodo)