Japan’s Megmilk Snow Brand Co. is making changes to its dairy manufacturing.

The publicly listed group said it is “consolidating” its output of dairy products in its domestic market.

Megmilk is set to end production at its yogurt and chilled-desserts factory in the city of Kawagoe and shift output elsewhere.

Factories further south in Ebina and further east in Noda will take on extra production, the company said in a statement.

Megmilk’s Luna Bussan Co. subsidiary in Matsuyama will also assume some of the output.

Some 151 staff work at the factory in Kawagoe.

“We have decided to consolidate our production functions for fermented milk and chilled desserts, including using our affiliated company, Luna Bussan Co., Ltd,” the group said.

“By implementing this, we will achieve labour savings by leveraging the evolution and improved speed of our manufacturing technology. This will improve productivity.”

Megmilk plans to invest Y10.9bn ($68.7m) expanding the three sites in Ebina, Noda and Matsuyama. Unspecified production work will start in the second half of the company’s 2027 fiscal a year, a period that begins in September. Operations will start in the first half of Megmilk’s 2028 financial year.

The moves are part of a set of changes the group has made to its manufacturing network. A plant in Kobe ended production in March. A factory in Okoppe will see production cease in 2030. The company is investing in cheese production at sites in Ami and Nakashibetsu.

Outside Japan, Megmilk is set to see production at a new cheese factory in Vietnam begin in the first half of this year.

In the 12 months to the end of March, Megmilk generated net sales of Y615.7bn, level with a year earlier. Operating profit fell 4.5% to Y18.2bn. Profit attributable to the owners of the parent more than doubled to Y32.8bn.

More to follow…