German breakfast cereal maker H&J Bruggen is investing EUR25m (US$29.88) in a production plant at Thiers, in central France,  to serve markets in southern Europe.

The Lubeck-based family firm is planning build a 7,300 sq.m facility at Thiers which will include a 4,300 sq.m storage and distribution area.

The plant will turn out between 20,000 and 30,000 tonnes of cereal products a year when it enters service at the end of 2007 and annual growth of 10-20% could follow The workforce at the plant is expected to reach 130 by 2010.

Around 60% of Bruggen’s production is dedicated to European supermarket retailers own brand cereal products.