Vietnam Brewery to boost capacity by half

Vietnam Brewery Limited (VBL) on Monday announced that it would boost production by 50 percent within the next 12 months, raising output from to 4.2 million hectoliters per year from the current 2.8 million hectoliters.

Managing Director David Teng unveiled the information at the launching of its Visitor Center at the Hoc Mon Brewery in the city’s District 12, saying the project would make the company the biggest and most advanced beer maker in Vietnam.

“The Visitor Center that is opening on Tuesday is only one step in the huge and significant capacity upgrade that will cost US$68.1 million over the next 12 months,” Teng said. The event on Monday included launching of its new Corporate Social Responsibility Vision that was attended by Michel de Carvalho and Charlene de Carvalho-Heineken, principal owners of the Heineken brand.

Teng said the company, a joint venture between Saigon Trading Group (Satra) and Singapore-based Asia Pacific Breweries Ltd. (APB), has been licensed to increase the capacity as its factory in the district has run at full capacity. The joint venture has so far invested some US$161.5 million into the brewery.

The increasing capacity is to further strengthen the company’s position and sharpen its competitive edge in Vietnam, said an APB executive.

“Given a sizeable population of 87 million people and rising affluence, particularly among the large young population, Vietnam’s beer demand has been growing at a double digit rate and we believe this rate of growth will continue in the medium term,” said Roland Pirmez, CEO of APB, in a statement.

“Demand for our brands has been encouragingly strong and this expansion will enable APB to meet anticipated growth for our key brands, Tiger, Heineken and Larue,” he noted.

The investment will add a second canning line that produces up to 90,000 cans per hour, fermentation facilities and malt silos as well as comprise a brew house upgrade and warehouse extension.

When the enhancement works are complete in December this year, the APB brewery in HCMC will enhance its position as the largest brewery in Vietnam and the APB Group. Meanwhile, total production capacity of the APB Group in the country will be increased by over 25 percent.

The expansion also includes a waste water treatment plant designed to further optimize water usage.

VBL on Monday also launched its new Corporate Social Responsibility Vision. The initiative is consistent with the brewer’s vision to be the most socially responsible brewery group in Vietnam by 2015.

David Teng said that VBL had already made considerable progress in CSR activities over the past 20 years but will now take it to a much higher level.

Over the next four years, the brewer has plans to reduce thermal energy consumption by another 15 percent; cut water used for every liter of beer produced by a further 38 percent; and lower carbon footprint by 20 percent.

Concurrent to the brewery expansion in the city, APB is also expanding capacities in its breweries in Hanoi and Danang by a further 450,000 hectoliters in total. These expansions are scheduled to be completed by fourth quarter of 2011.

In 2010, total production capacity of VBL Group of breweries in Vietnam reached 445 million liters. – SGT

Posted by VBN on May 18 2011. Filed under Food & Beverage. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry