Japan’s leading confectionery manufacturer, Tokyo-based Fujiya Co., Ltd is to build its second plant in China to secure local supply and boost sales.
The new plant, located in Hangzhou, near Shanghai, is scheduled to start operating in 2012, manufacturing lollipops for local convenience stores and supermarkets, said Fujiya’s spokesperson Osamu Mizoguchi.
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Fujiya’s current plant in China, which was opened in 2004, and is also located in Hangzhou, mainly produces lollipops, milk and cream-filled confectionery. “But we think it will reach its limit of capacity in 2011, so a new plant is necessary,” Mizoguchi said, adding Fujiya will invest heavily in the equipment, although specific cost is still in discussion.
China is currently Fujiya’s only overseas production base, now a subsidiary of bakery products manufacturer Yamazaki Baking Co., Ltd.
Fujiya predicts annual sales in China will rise 38.5% from 2009 to JPY1.8bn (US$20.2m) by the end of 2010. This is projected to rise to JPY5bn in 2014 because of expanded capacity created by the new plant.
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