Vietnam & Germany: Saigon Beer strikes a deal with Krones AG for the construction of the new brewery in Cu Chi
German-based machinery manufacturer Krones AG, Neutraubling inked October 16 a deal with the Saigon Beer, Alcohol and Beverages (Sabeco) for the second-phase of construction at the Cu Chi Brewery Plant, Thanh Nien News reported October 16.
Under EPC (engineering, procurement, construction) contract, Krones – a global manufacturer of bottling and packaging machinery – is to equip and construct Sabeco’s largest brewery in outlying Cu Chi District.
Work on the US$124 million-invested plant started in March in the Cu Chi Industrial Zone, with the brewery’s initial capacity of 100 million liters set to come on line by mid-2007.
Under the second-phase expansion, the plant will double its output to 200 million liters in early 2008.
The Krones’ project package covers the buildings and the outdoor installation for the entire brewery, together with the bottling operation.
This also includes processing buildings, tank farm, bottling hall, water treatment, office building, canteen and landscaping.
State-owned Sabeco, with a facility in Ho Chi Minh City and several others around the country, accounts for about 30 percent of the domestic beer market, with an annual output of around 5 million liters.
The country is now home to 329 brewery enterprises currently producing 17 million liters of beer annually.
The government-approved master plan initiated standard trade protection measures that effectively bar foreign investors from production of beverages in Vietnam until 2010.
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