Danone is investing €240m in a new baby milk factory in the Netherlands, its biggest ever investment in a European production facility.

The new plant will begin producing Danone’s baby milk at the end of 2017. It is being built in Cuijk in Brabant, just a few kilometres from the company’s current Dutch operations in Utrecht.

Nutricia has doubled capacity at its current European plants over the past three years, the company said.

Demand has been skewed by buyers from China who don’t trust local milk powder following the melamine scandal. In many Dutch stores, customers are limited to one pack of powder.