This is the first step in SMC’s entry into the highly attractive Thai beer market.
"The granting of the beer license is an important milestone in our investment in a brewery in Thailand," SMC said.
SMC signed in Bangkok an approval by the Excise Department of Thailand’s Ministry of Finance of a license to produce beer in favor of San Miguel Beer Thailand. Present during the signing was Thai Finance Minister Somkid Jatusripitak, Thai Industry Minister Phinij Jarusombat and SMC Chairman and CEO Eduardo M. Cojuangco.
Said Cojuangco: "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’s recent investments underscore our faith in Thailand, its people and its leadership, and signify our seriousness in investing in Thailand’s future," Cojuangco added.
SMC concluded earlier a definitive sale and purchase agreement with Thai Amarit Brewery Ltd. for the purchase of the Thai Amarit assets in Thailand.
Completion of the transaction is expected in the next two or three weeks. The acquisition accelerates SMC’s entry into Thailand.
SMC broke ground in April for a manufacturing complex in the Amata City (Rayong) Industrial Estate in Thailand.
The company acquired for around 3.9-billion Thai baht Thai Amarit’s assets, which include a modern and fully equipped brewery on a 21.75-hectare site at the Pathum Thani province in Central Thailand, about 30 kilometers north of Bangkok. The brewery, which employs state-of-the-art technology from Europe, has a capacity of about 1 million hectoliters.
The Pathum Thani site still has around 11 hectares of vacant land available for future expansion. Also included in the acquisition is Thai Amarit’s 2.4-hectare property strategically located at the Bang Po area of Metro Bangkok, which has an existing port facility with access to the Chao Phraya River.
The brewery acquisition will allow the entry of SMC’s own beer brands and provide the company access to the fast-growing Thai beer market, currently Southeast Asia’s largest.
It likewise offers potential synergy with other SMC projects in Thailand and in the region. San Miguel (Thailand) Co. Ltd., SMC’s venture in Thailand’s Rayong industrial estate, involves the manufacturing and distribution of SMC’s product lines including beverage products, processed food and snacks, as well as feed mill operations.
The first phase of this venture is the construction of a non-alcoholic beverage facility in SMC’s 15-hectare property in the Amata industrial estate, located about 114 kilometers from Bangkok.
SMC considers Thailand as a strategic investment site due to its economic miracle and excellent political leadership and policy of Prime Minister Thaksin.