The investment covers nine lines in total—eight at the new site and one at the existing operation. Together, they will bring the Chinese output to more than 200 milion units per month.
The company holds the sixth-largest diaper market share in China, with roughly 3% last year, according to British research firm Euromonitor International. Daio hopes to catch up to market leader Procter & Gamble, the American conglomerate that controls a quarter of the market, and Kao, which holds 12%, the most among Japanese companies in China. There are nearly 2000 diaper brands in the country but experts feel there is a clear divide between premium and sub-par products.
Daio began extending its sales network to cities in inland regions this year and aims to boost Chinese sales of household paper products 70% to ¥25 billion ($225 million) in the current fiscal year ending in March.
Euromonitor predicts China's diaper market to reach $11.4 billion by 2020, up 50% from 2016.
