More foreign candy makers are expected to build plants on the mainland to fend off pressure brought on by Chinese counterparts, which have become increasingly competitive, said industry officials at a food fair in Shanghai yesterday.

　　Japanese candy maker Fujiya Co Ltd invested US$3 million to build a plant in Hangzhou. As the company's first mainland plant, the facility will start production in April. Five months ago, Japan's largest candy maker, Morinaga & Co Ltd, launched a Shanghai plant with a US$7.17 million investment.

　　Others are also in planning mode. Intersnack Knabber-Gebaeck GmbH & Co KG, a German cookie and candy maker, plans to localize its production. It is among many foreign firms with such intentions, Shanghai Daily has learned at the ongoing Sweets China fair which runs through tomorrow at the Shanghai Everbright Exhibition Center.

　　"Exotic candies are losing luster as their prices are too high. In comparison, the quality and packaging of China-made candy are catching up with imported items," said Zheng Min, the Shanghai Import Food Enterprise Association's general secretary. "The gap in marketing and branding is also closing."

　　China's 10 billion yuan (US$1.2 billion) candy market still has great potential, according to industry sources. China's average annual candy consumption was 0.8 kilogram each person, just a third of the global standard.

　　In recent years, domestic candy makers such as Fujian Yake Food Ltd and Four Seas Foods (Shantou) Co Ltd, have enjoyed fast growth.

　　Yake, established in 1993, produced more than 40,000 tons of candies in 2003 and achieved 800 million yuan in sales. Four Seas achieved growth rate of 50 percent in sales last year.