Japanese dairy maker Meiji to boost China output by 30% on solid sales

26, Mar. 2020

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TOKYO, NNA – Major Japanese dairy maker Meiji Co. will ramp up production capacity by 30 percent in China on solid sales mainly in the eastern coastal region.

The company plans to invest 148.5 million yuan ($20.9 million) to add production lines for milk, probiotic drinks and yogurts at Meiji Dairies (Suzhou) Co., a local manufacturing unit, to begin operation in March 2021, it said in a statement on Wednesday.

Construction is set to start in April. The Suzhou unit in the eastern coastal province of Jiangsu has seen growing sales in the eastern region of the country since the start of sales in 2013, the statement said.

In its broader efforts to build footholds overseas for future growth, China is the most important market, the Tokyo-based firm said.

Last September, it established Meiji Dairies (Tianjin) Co. to expand business in the field and will begin production in the second half of 2022 as initially scheduled, a Meiji spokesman in Tokyo told NNA on Wednesday.

The Japanese dairy, confectionery and pharmaceutical group posted 47.1 billion yen in sales outside Japan in the business year to March 2019, according to its financial statement.

The spokesman declined to disclose current sales figures in China but said the group aims to achieve 23 billion yen ($208 million) in sales in the country in the year to March 2021.

The group arms in China produce ice creams, confectionery and other food products.

Meiji Dairies (Suzhou) Co. (Photo courtesy of Meiji)
Meiji Dairies (Suzhou) Co. (Photo courtesy of Meiji)