Kao Corp. announced this week it will construct a new plant for sanitary products in Sakata, Yamagata Prefecture in Japan.
The aim of the new plant is to strengthen its supply system to meet an expected sharp increase in demand for “Merries” baby diapers both domestically in Japan and global markets including Russia.
The company says it also sees expansion opportunities for its sanitary products, such as adult diapers, as Japan’s society ages.
The new facility at the Sakata plant complex is expected to cost approximately ¥5 billion ($50 million) with construction expected to start in September. Kao has hygiene product manufacturing facilities currently in Japan, including one in Tochigi Prefecture and the plant at Ehime Sanitary Products Co. Additionally, Kao completed work on a diaper manufacturing plant in China in mid-2012 and operates a diaper plant in Indonesia where it is reportedly constructing a second facility to make sanitary napkins and laundry detergent.