The venture to be called San Miguel Vietnam Co., Ltd. will operate a multi-product flexi-line that will manufacture high quality beverages including bottled water and fruit based-drinks using locally sourced raw materials.
The facility, to be built in a 100,000-square meter property in Bien Hoa City, Dong Nai Province which SMC has leased for 40 years from Amata (Vietnam) Co. Ltd.
SMC obtained its business license from the Dong Nai Industrial Zones Authority last October 2003.
Company officials said the venture underscores SMC’s confidence in Vietnam’s economic prospects and its growing consumer market. Driven by strong consumer consumption and higher levels of foreign investments, Vietnam’s economy posted the fastest growth rate in the region for 2003.
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. in Ho Chi Minh City started making metal closures and caps while San Miguel Yamamura Haiphong Glass Co. began producing and marketing glass containers.
Its fourth facility, TTC Vietnam in Binh Duong is one of the latest organized feed and hog farming operations in Vietnam.
Commenting on its new investment in Vietnam, SMC chairman Eduardo "Danding" Cojuangco Jr. said: "We were among the first international companies to see Vietnam’s potential in the early 1990s. Now we seek to build a stronger relationship with our partners and consumers in Vietnam and are excited to have further opened up San Miguel to new horizons in terms of both our products and reach."
SMC’s principal businesses are beverages, food and packaging. The company exports its products, primarily beer, to over 40 markets in various regions throughout the world. It has operations and over 100 facilities in China, Hong Kong, Indonesia and Australia.
To further strengthen its presence in Vietnam, SMC is eyeing a joint venture with Hormel USA for the establishment of a processed meat manufacturing plant.
SMC said no agreements have been reached yet with Hormel USA as talks are still ongoing. The company though has committed to make the proper disclosure as soon as a deal is worked out with Hormel.
SMC has earmarked $100 million for its regional expansion or P5.5 billion for each country.
The company wants to expand in seven Asian countries this year to propel growth as it faces saturation in the local market, where it dominates the beer, liquor, softdrink and food sectors.
SMC’s international operations currently contribute about 15 percent of total revenues.