Japanese dairy products firm Meiji Dairies is reported to be planning to invest a minimum of ¥10bn (US$82.9m) to construct its largest food-processing plant yet.

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Meiji Dairies is to build the plant despite the weak economy because demand for health-oriented food products in Japan is growing, reported the Nihon Keizai Shimbun. The move reflects the company’s aim to strengthen its position as a leading Japanese producer of yoghurt and nutritional foods.

The new plant, which will produce yoghurt and functional foods, is to be constructed in the city of Kaizuka in Osaka, and will have a total floor space of 178,200 square metres. Construction is expected to start as early as next spring, with an aim to begin production in fiscal 2005.

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