Vinacafe Bien Hoa looks to expand production
Vinacafe Bien Hoa Joint Stock Company (Vinacafe Bien Hoa) will bring its third coffee plant based in southern Dong Nai provinceâ€™s Long Thanh Industrial Park into production in 2012, earlier than the initial projection for the first quarter of 2013, according to the companyâ€™s general director Pham Quang Vu.
The new plant will turn out 3,200 tonnes of instant black coffee per year, 2.7 times more than current capacity and 21,000 tonnes of three-in-one and four-in-one instant coffee products per year, double the current capacity. Up to 70 per cent of the production will go for export and the remaining 30 per cent for domestic consumption.
Vinacafe Bien Hoa holds a 40 per cent stake in the domestic market currently and within the next five years the firm is set to boost its presence in the Chinese market by opening a coffee plant in the countryâ€™s northern area.
The Chinese market represents 30 per cent in the coffee firmâ€™s total export value of over $8 million in 2010, behind the US market with 35 per cent. The figure, however, would reach 40 per cent, if cross-border exports were included.
In 2010, Vinacafe Bien Hoa raked in VND1.6 trillion ($80 million) and VND170 billion ($8.5 million) in revenue and pre-tax profit figures, respectively.
In a related development, Vinacafe Bien Hoa will make its debut on the Ho Chi Minh Stock Exchange (HoSE) on January 28, 2011 under the share code VCF after getting the go-ahead from the State Securities Commission and HoSE authorities. The company will list 26,579,135 shares, or 100 per cent of its total chartered capital of VND265.79 billion ($13.29 million).
Earlier on January 21, 2011 the coffee firm joined hands with its listing consultant -the Viet Capital Securities Company (VCSC)- to hold a meeting with the shareholders to keep them up to date of the companyâ€™s operations as well as future development plans. – VIR
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