French food giant Danone will invest 240 million euro into a new baby food factory, which will be built in the Dutch city of Cuijk. Not only will it produce baby milk powder, but also food for premature babies.
Nutrilon and Aptamil
The new factory carries a 240 million euro price tag, but should be able to start manufacturing baby milk powder by the end of 2017. Its products, like Nutrilon and Aptamil, will be exported to some 80 countries. The company already has a production facility in Cuijk, but that will shut down once the new factory is complete. Automation should help more than double the current production (and therefore alleviate the closure of the first factory). This is the first time Danone has invested an amount this large to expand its European manufacturing capabilities.
It needs the investment to meet the increased baby milk powder demand, mainly from China, a country that still suffers from a massive food scandal in 2008. Back then, thousands of baby's became ill after they drank melamine-poisoned baby milk "made in China". For this reason, Danone had already sizeably increased its baby food production capabilities in Ireland and Germany.
The new factory will also make food specifically catered to premature babies and babies with allergies, as the company feels those markets offer plenty of growth.