FOR IMMEDIATE RELEASE

MALAYA-VIETNAM GLASS LIMITED BREAKS GROUND

FOR NEW USD43 MILLION PLANT

New plant at Ba Ria-Vung Tau set to capture larger share of niche markets 

Kuala Lumpur - Fraser & Neave Holdings Bhd is investing USD43 million (RM142 million) in a new state-of-the-art glass plant in Vietnam under the operations of its subsidiary, Malaya-Vietnam Glass Limited (MVGL) to vie for a greater share of the growing market in Vietnam.

MVGL is 70 per cent owned by Malaya Glass Products Sdn Bhd (MGP) which in turn is a wholly-owned subsidiary of F&N Holdings Bhd. The remaining equity in MVGL is held by Saigon Beer Company – Alcohol and Beverage Corporation (SABECO).

Currently a market leader in Vietnam, the larger capacity of MVGL’s new plant at Ba Ria-Vung Tau is intended to address the additional demand generated by the expected improvement of the Vietnamese economy in the near future.  

The new glass plant, upon commissioning in the 1st quarter of 2011, will replace the existing plant which by then would be 16 years old.  Incorporating the latest technology, this glass plant  will be among the most modern within the glass group which together with its other plants in Malaysia, China and Thailand has a total annual capacity of 450,000 tons.

Speaking at the groundbreaking ceremony held recently, F&N Holdings chief executive officer, Mr Tan Ang Meng said MVGL aimed to target more niche sectors such as lightweight returnable bottles, shorter production run orders with higher margins and decorative containers, among others when the new plant comes on stream.  He added, commercial production is expected to commence in April 2011.

“MVGL sustained positive growth in Vietnam, which is an emerging market, especially in the beer and soft drink segments and will continue to focus on these niche areas when the economy improves.”

Tan added that the increased capacity will also enable MVGL to widen its export market, strengthen its regional position and to be the regional’s preferred supplier to serve multinational customers who have multiple operations in the region.

He also commended the successful relationship between Malaya Glass and Sabeco dating back to 1993 when both parties entered into a joint venture to pioneer the establishment of the first glass plant in Vietnam. “Today we are witnessing the continuation of the strong partnership between our two companies with the groundbreaking of this new plant,” said Tan.

Set on a 8.5 hectare site within My Xuan A Industrial Park about 120km east of Ho Chi Minh City , the new plant is located near the Cai Mep-Thi Vai International Port and  material suppliers at Tan Thanh District.  The new plant will increase the current capacity by 56 per cent from 50,000 tonnes to 78,000 tonnes per annum and run on European technology to produce lightweight bottles using natural gas, compared with the current fuel oil at the existing plant.

For the financial year 2008, F&N’s Glass Division contributed 12 per cent to the Group revenue while the Dairies Division contributed 54 per cent and the Soft Drinks Division 33 per cent.

About F&N Holdings Bhd

F&N Holdings Bhd is a Malaysian company listed on Bursa Malaysia with F&B businesses in soft drinks, dairies and glass packaging. Property is a non F&B division. The Group employs nearly 5,000 employees in operations straddling Malaysia, Thailand, China and Vietnam.

ooOoo

Issued with the compliments of Fraser & Neave Holdings Bhd

by Eric Pringle Associates Public Relations Sdn Bhd.

For further information, please contact Elsy Tan

Tel: +60-3-21617144 / Fax: +60-3-21618209

E-m:  epapr@epapr.com.my