Berli Jucker opens VN glass container plant - The Nation

Home ? business ? Berli Jucker opens VN glass container plant

Kwanchai Rungfapaisarn
The Nation
Ho Chi Minh City February 7, 2012 1:00 am

Berli Jucker (BJC) yesterday opened Vietnam's most advanced glass-container plant and is looking to expand its trading and manufacturing businesses, including the setting up of a glass factory in Burma to cash in on the opening of the country and the growth potential of its beverage market.

"The expansion of our glass factory to Vietnam is in line with our policy to strengthen the business amid the open market environment when the Asean Economic Community is fully effective in 2015," said Charoen Sirivadhanabhakdi, chairman of BJC, a subsidiary of Thai Beverage.

The plant, constructed in partnership with Owens-Illinois and Saigon Beer Alcohol Beverage, is about 60 kilometres southeast of Ho Chi Minh City in Ba Ria-Vung Tau province.

Charoen said BJC's regional expansion would be based on its strong roots in Thailand for nearly 130 years in many businesses, including health, medical and daily products.

"We are looking for opportunities in potential markets such as Burma and Indonesia. We appointed sales agents in Burma a long time ago but because of local political problems and a closed market environment, our agents could do nothing more than just take orders and deliver products to their customers.

"However, with today's opening market environment encouraged by its government, we will be more proactive in penetrating the Burmese market, as the country is growing quite strongly and local consumers need to consume more modern goods," he said.

BJC has had a close relationship with Owens-Illinois for more than 60 years, beginning with Thai Glass Industries in Thailand and now extending to Indochina and Malaysia.

The US$47-million (Bt1.5 billion) Vietnamese factory will initially produce about 75,000 tonnes annually of mainly returnable premium glass containers for Vietnam's beer, soft-drink, food, wine, spirits and pharmaceutical markets. The plant can adapt to market trends, extending to four lines with production capacity of 84,000 tonnes of glass annually.

Underlying the plant's capability and flexibility are one furnace, three glass-making lines and two printing lines for applied ceramic labels.

The plant employs nearly 450 people, mainly from the Ba Ria region, and uses natural gas for improved sustainability. The new plant, completed in November, replaces the old facility in District 4 of Ho Chi Minh City that was recently vacated to facilitate urban-development plans.

Al Stroucken, chairman and chief executive officer of Owens-Illinois, said O-I BJC had become Vietnam's leading glass-container manufacturer, supplying most of the country's local and global food and beverage companies.

"Vietnam is experiencing strong economic growth, which clearly provides opportunity for the glass industry. We know that beer is packaged primarily in glass here, and we know that consumers are looking for quality, taste and purity of contents. Our high quality and versatile glass containers are the perfect packaging solution," he said.

Owens-illinois

"Glass is the most economical and sustainable packaging available, especially when using returnable containers, so it is vital that we have operations in place as the markets in this region grow and mature," Stroucken said.

"This new plant allows us to meet and exceed the high expectations of current and future customers in this region."

Aswin Techajaroenvikul, president of BJC, said his company was focusing on Southeast Asia, particularly Indochina and Malaysia.

"The opening of our latest facility will further strengthen our foothold in Vietnam, where we have established trading and manufacturing operations in industrial and consumer products.

"Together with our TGI glass plants, the joint venture will make BJC and O-I BJC the largest producer of glass containers in Southeast Asia. It also is another major milestone in expanding BJC's operations in the region," he said.

BJC two years ago acquired 75 per cent of Thai Corp International, a local trading company in Vietnam. BJC will use the company's logistics network to distribute its products in Vietnam.

BJC, via its local 50-per-cent-owned subsidiary Thai Beverage Can (TBC), has also joined with Ball Corporation, the world's largest producer of aluminium cans, to set up a $60-million plant called TBC-Ball Beverage Can Vietnam. The facility will start commercial operations in May with production capacity of 850 million cans per year.

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Source: http://www.nationmultimedia.com/business/Berli-Jucker-opens-VN-glass-container-plant-30175301.html

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