Want Want China has set up a factory to produce dairy drinks, a plant that will be the Hong Kong-listed company’s biggest.

A spokesperson for Want Want said the “model plant” is, at a cost of CNY700m (US$107.2m), “the group’s biggest investment in the mainland”. It is located alongside Want Want’s existing plants just outside Changsha in China’s central Hunan province. 

Testing is now underway on the production lines, according to local Chinese language media.

Want Want officials did not comment further on the plans because the company’s annual results are due to be published on 15 March.

Chinese language media has also reported Want Want is also moving into baby formula. A Want Want official had told local newspapers in Hunan that “the end of [China’s] one-child policy obviously means demand will increase” and said the company is in talks with Japanese suppliers for milk while weighing up dairies in New Zealand and Australia.