Nissin investing in efficient production

Nissin investing in efficient production

Nissin Foods Holdings has detailed plans to invest JPY57.5bn (US$500.5m) in the construction of a new production plant in Japan, its first new manufacturing facility in the country in twenty years. 

The company will construct the new Kansai plant in Ritto City, Shiga Prefecture. It will be located approximately 350 metres north of Nissin's existing facility in Shiga, which the new site will replace. 

Nissin said that the existing facility, which has been operational since 1973, is its "main production site in west Japan". However, the old site is facing issues over the need to modernise equipment and its "future expandability", the Japanese noodle maker said. 

Through the construction of the new facility, Nissin hopes to improve production efficiency and expand the facility's capabilities. The site will include will include an R&D centre and "state-of-the-art" machinery as well as being more efficient, Nissin said. 

"Through initiatives including manpower saving of over 50%, the Company targets to achieve cost reductions that will outweigh the increase in depreciation costs in association with the construction of the new plant," the group noted. Further details of projected job losses were not provided. 

Construction will commence in May of next year and the factory is scheduled to be completed by December 2019. When fully operational it will have the capacity to produce 3,150,000 servings per day, Nissin added.