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Japanese food group Meiji is investing JPY 48 billion (approx. $331 million) in the construction of a new dairy production facility in Nakashibetsu, Hokkaido, Japan. Meiji says that the new plant will facilitate the stable provision of dairy products in response to its “deteriorating facilities” at its Nishi Shunbetsu and Honbetsu plants, which have been in operation for more than 50 years. It will also enable the company to improve the added value of dairy products to expand its domestic and international businesses. The Nishi Shunbetsu facility produces non-fat dry milk, concentrated skimmed milk, butter and cream, while Honbetsu makes concentrated skimmed milk and cream. The products are made for both retail and B2B markets. The company also makes ingredients for yogurt, sports proteins and other products. At the new plant, Meiji will create new products that “increase the inherent value of milk” in addition to its existing products, by reorganising its production structure, strengthening its core business and promoting growth by increasing demand and overseas export capabilities. Meiji said the new 230,258-square-metre facility will have a production capacity of 430,000 tons of raw milk a year, with the expectation that this will eventually increase to 500,000 tons annually. The group added that the new plant will have “sustainable added value that is friendly for people and the environment,” and will work to expand demand for its products including obtaining Halal certification to promote exports. The dairy company will work on “labour reduction” at the new site, though “IoT and facility automation,” helping it to pursue productivity improvements and develop a more comfortable work environment. The multi-million investment will also be used to implement “new technology and production methods” to cut down carbon emissions and groundwater drainage by 50%, in comparison to its other factories. Construction will begin in April 2024, with the space expected to be operational by March 2027. Production at the Nishi Shunbetsu and Honbetsu facilities is due to cease in 2027. It is unclear how many jobs will be impacted by the Honbetsu and Nishi Shunbetsu closures, and it is not known whether employees will be able to transfer to the new location.