Japan’s Megmilk Snow Brand Co. is implementing significant changes to its dairy manufacturing operations.
The publicly traded company announced that it is consolidating its dairy product output within its domestic market. Specifically, production will cease at its yogurt and chilled desserts factory in Kawagoe, with output being transferred to other facilities.
Factories located in Ebina to the south and Noda to the east will absorb this extra production. Additionally, Megmilk’s Luna Bussan Co. subsidiary, based in Matsuyama, will also take on some of the production responsibilities.
Currently, 151 employees are engaged at the Kawagoe factory. The company stated, “We have decided to consolidate our production functions for fermented milk and chilled desserts, including using our affiliated company, Luna Bussan Co., Ltd.” This move aims to enhance productivity by leveraging advancements in manufacturing technology, which allows for labor savings.
Megmilk plans to invest approximately Y10.9 billion ($68.7 million) to expand operations at the three sites in Ebina, Noda, and Matsuyama. Unspecified production activities are expected to commence in the latter half of its 2027 fiscal year, starting in September. Operations at these facilities will ramp up in the first half of Megmilk’s 2028 financial year.
These modifications are part of a broader strategy to optimize the company’s manufacturing network. Notably, a plant in Kobe ceased operations in March, while a facility in Okoppe is scheduled to shut down in 2030. Meanwhile, Megmilk is also channeling investments toward cheese production at its facilities in Ami and Nakashibetsu.
Beyond Japan, the company anticipates launching production at a new cheese factory in Vietnam in the year’s first half.
For the fiscal year ending in March, Megmilk reported net sales of Y615.7 billion, consistent with the previous year. Operating profit experienced a decline of 4.5%, landing at Y18.2 billion, although profit attributable to parent company owners more than doubled to Y32.8 billion.
