Firm to build MSG plant

Firm to build MSG plant

TAIPEI (DPA): Taiwan's food giant Ve Wong Corp. will build a US$20 million joint venture monosodium glutamate (MSG) factory in Indonesia, the company said Saturday.

Ve Wong will hold a 49 percent stake in the factory. Indonesia's Sungai Budi Group will hold 51 percent, Ve Wong Spokesman Hsieh Cheng-hsiung said.

The 36-hectare plant, in Bandar Lampung Province, South Sumatra, will be built early next year. It will produce 15 million tons of MSG a month, most of which to be shipped back to Taiwan.

Ve Wong and Sungai Budi Group will sign the agreement in Taipei today.

"We chose Indonesia because it has cheap manpower and abundant molasses, the raw material for MSG," Hsieh said.

"If the joint venture succeeds, we plan to expand our cooperation with Sungai Budi Group to produce soy sauce, instant noodles and soft drinks," he added.