Taiwan-based food and beverage group Uni-President has announced plans to produce dairy products in Wuhan, Hubei, and to sell these products under its Uni-President brand in China.

Xiao Fengshi, the general manager of Uni-President Central China, told local media that dairy sector is the largest sector for Uni-President's food business in Taiwan. The group plans to produce dairy products in Wuhan and the project is currently undergoing evaluation.

With regards to the rumor that Uni-President will raise cows in Wuhan to deal with the milk source problem, Xiao said Uni-President's advantages lie in production. The group is very cautious about raising cows and will not consider it for now.

He said Wuhan is situated in a central area with low costs and talent advantages. Uni-President will build its second mainland headquarters in Wuhan and will relocate its training center and research center to the city.

In addition, Uni-President will invest USD15 million to expand its beverage production lines in Wuhan and the project is expected to be completed before the end of 2009.