Lidl has confirmed plans to open an ice cream plant in Germany.

Lidl has confirmed plans to open an ice cream plant in Germany.

Lidl has confirmed plans to open an ice cream production plant in the German town of Übach-Palenberg.

The discounter told just-food the plant was being built to ensure "long-term availability and delivery readiness".

Reports have suggested there has been an EUR200-250m (US$222-278m) investment in the two-storey factory that has 10 production lines but a spokesperson did not disclose any detail regarding investments.

Lidl will produce up to 20% of its own ice cream for the German and international markets as a result of the plant.

The retail giant added recruitment efforts for the plant have started and planning is underway.

In recent years discounters have dominated the retail market, stealing share from major retailers in various markets across the globe. Reports have surfaced that Lidl is plotting expansion in two highly competitive and developed grocery markets: the US and Australia.