Dutch dairy cooperative, FrieslandCampina is investing EUR8.8 million (US$10.9 million) to expand production capacity in Vietnam following three consecutive years of double-digit annual sales growth.

The expansion is due to take place at the Binh Duong facility which was the first factory that FrieslandCampina opened in Vietnam back in 1996. This initial investment was then followed by the opening of a second factory in Ha Nam last year.

Maximum production capacity has now been reached at both facilities, so plans have been drawn up to complete a hefty expansion of existing facilities in Binh Duong. The new facilities are to be built to meet growing demand for dairy products under the Dutch Lady, YoMost and Friso brands.

Jan Bles, managing director of FrieslandCampina Vietnam said, ''In the past three years, sales grew by an average of 10% per year. Sales also showed robust growth in the first few months of this year. We're therefore delighted that the executive board has given the green light for the realisation of the expansion.''

The rate at which the expansion project will develop depends on how demand levels evolve but it is expected to be finalised by the end of 2012 at the latest.