Danone has increased its capacity to manufacture Nutrilon baby milk powder at one of its sites in Europe in order to meet demand worldwide.

The French group has invested in a plant in Fulda in Germany, a move the company says will improve the availability of Nutrilon in the Netherlands but also meet "skyrocketing demand" for the product globally, especially in China.

Danone said "many" Chinese consumers are seeking infant formula made in Europe. "They especially like Nutrilon, but with a Dutch label. This creates a run on Nutrilon Standard in Dutch stores," the company said.

Danone said the move meant for the second time in two years it was almost doubling the supply of Nutrilon Standard in the Netherlands.

The higher capacity came on stream this week. Danone said the investment means the facility can now produce 50 million more packs of Nutrilon Standard every year, taking total output to 90m.

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