SMC to brew beer in Thailand
produce beer in Thailand, a deal that will allow the entry of the
Philippines-based brewer's beer brands into the fast-growing Thai
beer market.
Thailand's Ministry of Finance granted San Miguel Corporation (SMC) the license that industry observers see as an important move for the company in the Asia Pacific region.
"The granting of the beer license is an important milestone in our investment in a brewery in Thailand," an SMC official statement said.
SMC signed an approval by the Excise Department of Thailand's Ministry of Finance of a license to produce beer in favour of San Miguel Beer Thailand. Present during the signing were key members of the government including Thai Finance Minister Somkid Jatusripitak, Thai Industry Minister Phinij Jarusombat.SMC chairman Eduardo Cojuangco said of the agreement: "Thailand's remarkable growth and its place at the forefront of Asia's fastest-growing developing economies are owed to the adoption of market-oriented policies that focus on international investment. And we note with admiration the wholehearted and equivocal support of Thai Prime Minister Thaksin Shinawatra for these policies."
SMC concluded earlier a definitive Sale and Purchase Agreement with Thai Amarit Brewery ("Thai Amarit") for the purchase of the Thai Amarit assets in Thailand.
SMC said that completion of the transaction is expected in the next two or three weeks.
The company has been making a clear aim to expand into the Thai market in recent months, breaking ground in April this year for a manufacturing complex in the Amata City (Rayong) Industrial Estate in the country.
The company acquired Thai Amarit's assests for around 3.9 billion (€78m) Thai baht Thai Amarit's assets, which include a brewery on a 21.75-hectare site at the Pathum Thani province in Central Thailand, about 30 kilometers north of Bangkok. The brewery, which is fitted with European equipment, has a capacity of about 1 million hectolitres.
SMC says that the Pathum Thani site still has around 11 hectares of vacant land available for future expansion once demand takes off. Also included in the acquisition is Thai Amarit's 2.4-hectare property located at the Bang Po area of Metro Bangkok, which has an existing port facility with access to the Chao Phraya River.
The project is also said to offer potential synergy with other projects in Thailand and in the region. San Miguel (Thailand), SMC's venture in Thailand's Rayong industrial estate, involves the manufacturing and distribution of its product lines including beverage products, processed food and snacks, as well as feed mill operations.
The first phase of the venture is the construction of a non-alcoholic beverage facility in its 15-hectare property in the Amata industrial estate, located about 114 kilometers from Bangkok.
