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China Food Co. has said that investments it is making to increase soya sauce, vinegar and bean paste production will have a positive effect on the company's results next year.

The company's soya sauce operations are operating at full capacity and are therefore unable to take advantage of growing demand, the company said in a filing with the London Stock Exchange.

The Shandong-based condiment maker is opening a new facility in Shou Guang City, with construction expected to be completed by mid-2008.

By restructuring its operations and opening a new soy sauce factory China Food Co. said it will increase production across a number of areas.

The facility will become the corporate headquarters of company subsidiary Full Fortune Group.

Meanwhile, Fu-Rich will re-locate its soya sauce production to the new purpose-built plant to improve capacity for vinegar and bean paste production at the existing Weifang City facility.

"The new plant will increase Fu-Rich's production capacity by 50% from 100,000 to 150,000 tonnes per annum", the company said.