Japanese food company Meiji Seika has said it plans to build a snack food factory in China next year in order to boost its production capacity there.

The company plans to increase its snack food production in China to ¥3bn (US$27.3m), from the current ¥700m, after the completion of the new plant in Guangzhou in November 2004, reported Asia Pulse.

Meiji Seika said it would provide 70% of the ¥700m to be invested in the new facility, while the remainder is to be provided by local business partners.

The company plans to sell off its existing plant in Guangzhou when the new factory is completed.