Swedish firm Midsona is planning to increase its plant-based meat alternatives production capacity by investing in its manufacturing unit in Castellcir in northern Spain.

The company will invest Skr45m ($5.2m) to boost the production of frozen goods, as well as shaped and baked products.

With this investment, the company intends to increase the production of both first and second-generation plant-based alternatives such as tofu, tempeh, vegetarian burgers, pies and meatballs.

The investment will also create an opportunity to develop and manufacture third-generation plant-based alternatives, including chicken, fish, and meat-like products.

Midsona CEO Peter Åsberg said: “The investment means that we can significantly increase production capacity and broaden the product range towards more advanced products.

“With this investment, we should in the long run at least be able to double sales in plant-based meat alternatives to approximately Skr300m. An acquisition with a corresponding turnover would have been significantly more expensive than the approximately Skr45m that we are now investing.”

The new capacity at the Castellcir manufacturing unit is expected to come online by the end of next year.

once commissioned, Castellcir manufacturing plant will become Midsona Group’s hub for plant-based meat alternatives and manufacture all the products offered by Group’s various divisions.

The company will also develop new types of cardboard and plastic packaging with this investment.

Åsberg added: “The increased capacity in our Spanish factory means that we secure the supply of goods in the long term while we can reduce our costs. Economies of scale and improved production efficiency with increased automation lead to large cost savings, which we believe will be seen after the first year.”