SMC, Hormel in talks for Vietnam proj

Food and beverage giant San Miguel Corp. is in talks with Hormel USA for a possible joint venture in processed meat manufacturing in Vietnam.

In a disclosure statement filed with the Philippine Stock Exchange, SMC said no agreements, however, have been reached yet as talks are still ongoing. "The proper disclosure will be made at the appropriate time."

SMC is hoping to put up a meat processing facility in Dong Nai province, which has earlier issued an investment license to the food and beverage giant.

The investment license will allow SMC to be part of Dong Nai’s economic growth and prosperity, which underscores SMC’s faith in Vietnam and its seriousness in investing in its future. SMC’s presence in Vietnam goes back as early as 1996 when its brewery, San Miguel Brewery Vietnam Ltd. In Nha Trang, began operations. That same year, San Miguel Phu Tho Packaging Co. started making metal closures and caps while San Miguel Yamamura Haiphong Glass Co. began producing and marketing glass containers.

Last year, SMC completed its purchase of TTC Vietnam Ltd., a company with hog farm and feed milling operations in Binh Duong.

Aside from Thailand and Vietnam, SMC has been eyeing China, Indonesia, Australia, Malaysia and Taiwan for its regional expansion. It will sign agreements soon to establish food and beverage complexes in these areas.

SMC expects its annual group revenues to increase by $300 million from sales generated in these markets.

SMC has earmarked up to $700 million for planned acquisitions and investments in Asia, aimed at seeking offshore growth to complement its dominant foothold in the local beverage market.