Japanese food group Meiji Co. has revealed plans to invest Y48bn ($331m) in a new domestic dairy production facility in Nakashibetsu, Hokkaido. This move will support the company in “reorganising” its manufacturing sites in the region. The new facility will replace the “deteriorating facilities” at Meiji’s Nishi Shunbetsu and Honbetsu plants and ensure a more “stable provision of dairy products.”
The investment will result in the construction of a 230,258 square metre space that will continue to produce all products previously made at Honbetsu and Nishi Shunbetsu, along with milk protein, for both retail and B2B purposes. According to the company, the new facility will have a production capacity of 430,000 tons of raw milk a year, with plans for potential growth to 500,000 tons.
To achieve this, Meiji is looking to implement “new technology and production methods” to reduce carbon emissions and groundwater drainage by 50%, compared to its other factories. The new site will also focus on “labour reduction” by using “IoT [internet of things] and facility automation” to “pursue productivity improvements” and develop a more “comfortable work environment.”
The construction is set to commence in April next year, and the facility is expected to become operational by March 2027. Production at Nishi Shunbetsu and Honbetsu is scheduled to cease in May and September 2027, respectively. Meiji has stated that the investment in the new site will have a “minor” impact on its financial results for the year.
In its consolidated financial results for the first six months of the fiscal year ending March 2024, Meiji Holdings, the parent company of Meiji, reported a 5.5% increase in net sales from 2022, reaching Y549bn. Its operating profit was also up 2.9% at Y44bn. Additionally, in 2020, the group announced the establishment of a new unit in China for the production and marketing of milk, yogurt, and confectionery in the south-eastern city of Guangzhou.
This significant investment by Meiji is in line with the food and beverage industry trends and demonstrates the company’s commitment to adopting new technologies and sustainable practices. It will also contribute to the food and drink business by enabling Meiji to enhance its production capabilities and expand its product offerings, thereby staying competitive in the market and meeting food and drink consumer trends.
