Business

Thursday October 29, 2009

F&N invests US$43mil in Vietnam glass plant


KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) is investing US$43mil in a new glass plant in Vietnam to vie for a greater share of the growing market in the country.

In a statement, F&N said the plant was held under Malaya-Vietnam Glass Ltd (MVGL), a 70%-owned unit of Malaya Glass Products Sdn Bhd which in turn was a wholly-owned subsidiary of F&N. Saigon Beer Co - Alcohol and Beverage Corp owns the balance 30% in MVGL.

F&N chief executive officer Tan Ang Meng said MVGL planned to target more niche sectors such as lightweight returnable bottles, shorter production run orders with higher margins and decorative containers when the new plant came onstream.

Commercial production is expected to commence in April 2011 and the new plant will increase MVGL’s current capacity by 56% from 50,000 tonnes to 78,000 tonnes per annum.

“MVGL sustained positive growth in Vietnam, which is an emerging market, especially in the beer and soft drink segments, and will continue to focus on these niche areas when the economy improves,” Ang said.

Tan added that the increased capacity would also enable MVGL to widen its export market, strengthen its regional position and be the region’s preferred supplier to multinational customers.


F&N : [Stock Watch] [News]

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