The Council for Development of Cambodia (CDC) has approved a new factory in Kampong Speu province involving an investment of $50.7 million. The drinks can factory is expected to end the current monopoly in the beverage industry, officials said.
Cambodia Investment Board of CDC (CIB) has approved the project of Baosteel Can Making (Cambodia) Co Ltd which will be located in Kraing Leav village of Sambo Commune and will be able to create over 150 jobs for Cambodian people to supply its products to brewery and drink factories in Cambodia, provincial governor told Khmer Times yesterday.
Vei Samnang, governor of Kampong Speu province, said the company will present the details of the project to the provincial authorities including the production chain after it receives the approval from CDC, but welcomes the project as it would help develop Cambodia’s economy through producing and supplying cans to breweries and drink makers in Cambodia.
As rising oil prices drove up the cost of packaging, according to Samnang, people in the industry also said there is only one supplier of cans in the beverage industry.
“Factories not only produce beer but also other types of drinks and it would be easier to buy cans from domestic suppliers instead of importing them,” he said.
He also said that he is yet to meet the investors but he welcomed them and hoped it will help create jobs and income for the Cambodian people.
Ratana Hoeung, finance manager of Vattanac Brewery Ltd which produces Vattanac and Krud beer brands packaged in both cans and bottles, told Khmer Times that Cambodia’s breweries and drink makers are [delivered cans] by only one supplier in the industry.
“It would be very helpful because the new factory will create competition and will help reduce the cost, but the quality of the can from the newcomer also matters,” he said.
Hoeung pointed out that Baosteel needs to produce quality products to satisfy breweries and drink producers in Cambodia in order to build trust … as most brewery products are mostly premium that needs a high standard of cans.
“It is because our beer is in the premium category focussed on high quality… it is necessary for us to check the quality [of cans] and if they are not up to the mark, breweries will not support them,” he said.
He further said cans are imported as a backup arrangement when there is insufficient supply from the local supplier.
CIB also approved five other investment projects — one each in Phnom Penh, Kandal province, Kampong Chhnang province and two in Kampong Speu province, according to a statement released by CDC.
It said, in one of the projects in Kampong Speu province, GTV Motor Co Ltd will invest $15.6 million to build an auto assembly factory in Ang Popeal commune of Kong Pisey district.
Elsewhere, Glotec (Cambodia), K Fine (Cambodia) Garment, ECKL Packaging and Konda Furniture will invest $4.4 million, $3.9 million, $3.1 million and $2.3 million to build factories for processing bamboo trees, apparel, plastic bags and furniture respectively, creating nearly 2,600 jobs, according to the statement.
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