Russian juice producer Lebedyansky is set to spend between US$60m and $70m on a new facility in the city of Novosibirsk, according to local reports

The company, which is on the brink of buying St Petersburg-based rival Troya-Ultra, had originally pegged $40m for the plant, SKRIN Newswire said today (9 November), but is upping the projected production capacity from 2.5m hectolitres to 3m.

The news service cited a company spokesperson saying that the increase will allow Lebedyansky to reduce transport costs and expand the market around the Siberian city. A separate report in Vedomosti newspaper claimed that construction will begin in the spring, with completion expected in 2010.

Lebedyansky has seen sales in Russia grow strongly this year. In August, the company, which produces brands including Ya and Tonus, reported a 32% jump in first-half sales to US$345.1m, while net profit rose 15% to US$52.4m.