San Miguel to build beverage facility in Indonesia

San Miguel to build beverage facility in Indonesia

Agence France-Presse, Manila

Philippines brewer San Miguel Corp. said Thursday it has broken ground for a new beverage manufacturing facility in Indonesia as part of its Asian expansion.

The project would be located outside Jakarta, at the MM2100 Industrial City in the city of Bekasi in the west of Java island, San Miguel said in a statement.

Company officials visited the site to lay markers prior to the start of construction.

A new company called PT San Miguel Indonesia Foods and Beverage will be created and it will manufacture and distribute ready-to-drink soft beverages.

San Miguel will control an 85 percent stake in the firm, and PT Delta Djakarta Tbk, its brewery in Indonesia, will hold the balance of 15 percent, the statement said.

The Philippine company said more ground-breaking activities are scheduled within the year in Australia, Vietnam, China and Malaysia.

The firm has more than 100 manufacturing facilities in the Philippines, China, Hong Kong, Indonesia, Vietnam and Australia. It exports its products to more than 40 countries.

It noted Indonesia's huge beverage market had been growing at an average of 20 percent in the past five years.

"This new business reflects San Miguel's full confidence in Indonesia as a fast-growing economy and manifests our continuing commitment to promote the best interests of consumers in this country," San Miguel chief executive Eduardo Cojuangco said in the statement.

Meanwhile, San Miguel said it has also completed its acquisition of the brewery assets of Thai Amarit Brewery Ltd., which is also part of its aggressive regional expansion program.

The assets include a modern and fully-equipped brewery and the acquisition would complement other San Miguel projects in Thailand.

Also as part of its expansion program, the firm said it is also eyeing to set up a beer and liquor unit in Malaysia.