Kao Corporation will construct a new plant for sanitary products within the Sakata Plant complex in Sakata City, Yamagata Prefecture, Japan.

The new plant construction aims at strengthening the stable product supply system to meet the sharp increase in demand for Merries baby diapers in both the Japanese and global markets. Investment will amount to approximately 5 billion yen for construction of new plant buildings and facilities. Construction will start in September 2013, with the operation onset from spring 2014.

In Japan, as necessary, Kao has fortified its production capacity of sanitary products at the Tochigi Plant and the plant at Ehime Sanitary Products Co., Ltd. In addition, by constructing a new plant for Merries baby diapers at the Sakata Plant complex, the third production base for sanitary products in Japan will be developed and Kao's supply system will be further reinforced.

The new production base for sanitary products at Sakata also takes into consideration higher demand for products related to the aging society such as increasing cases of light urinary incontinence. Moreover, taking advantage of its location in Sakata City, the new plant will play a role to fortify the supply base for global markets including Russia as well as for the Japanese market.

Overseas, Kao has enhanced its production capacity in China, where the Hefei Plant is in operation, and in Indonesia, where the second plant with production facilities for sanitary products is under construction.

In the fields of cleanliness, beauty and health, Kao Group continues to contribute to the enrichment of the lives of people globally by supplying products while realizing profitable growth on a global basis.

Particularly in the global market, as well as in Japan, Merries is gaining a high reputation for its functional advantages such as "gentle to baby skin" and "breathability," and the demand for Merries is dramatically expanding. Kao strives to promote its business expansion.