26 March 2008 - Catering to strong domestic and export demand for its beers in North Vietnam, Asia Pacific Breweries Ltd (APB) has expanded the production capacity of its wholly-owned brewery in Hatay, located outside Hanoi in North Vietnam.
Hatay Brewery Limited (HBL), APB’s second brewery in Vietnam, after its South Vietnam brewery situated outside Ho Chi Minh City, was opened in 2003. Its initial capacity of 300,000 hectolitres (30 million litres) has now been increased by more than 50% to 460,000 hectolitres (46 million litres) at the cost of US$1 million. It currently brews Tiger Beer, Heineken, Anchor and Bivina.
“Vietnam is a key contributor to our financial performance in the Indochina region, which is APB’s largest profit generator, accounting for 48% and 37% of APB’s profit before interest and tax of $255 million and revenue of $1.78 billion respectively in FY2007. The expansion of HBL’s capacity is in line with our strategy to grow bigger and stronger in that market,” said Mr Koh Poh Tiong, Chief Executive Officer, APB.
APB’s operations in Indochina comprise five breweries in Vietnam, one in Cambodia and one in Laos, which was officially opened two weeks ago.
"The expansion is timely as volumes have increased from year to year, being bolstered by a robust economy and the rising affluence of the Vietnamese. Tiger and Heineken have been growing as we continue to reinforce their respective brand offerings to consumers," added Mr Chris Kidd, Regional Director (Indochina).
APB has consistently invested in increasing its brewing capacities in its Vietnam breweries. In 2001, it expanded the capacity of its South Vietnam brewery by three times to 1.5 million hectolitres (150 million litres) and again in 2006 by another 50% to 2.3 million hectolitres (230 million litres) to satisfy the Vietnamese thirst for its beers.
In 2006 and 2007, the Group went on to acquire three breweries in Central and South Vietnam, adding another 1.3 million hectolitres (130 million litres) in capacity. Today, its total capacity in Vietnam stands at more than 4 million hectolitres (400 million litres).