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Carlsberg pledges US$25million to upgrade Malaysia brewery

21 June 2022 By Louis Thomas

Carlsberg Group CEO Cees ‘t Hart has announced that the Shah Alam brewery will receive a sizeable investment.

2022 marks the 50th anniversary of the first Danish Pilsner brewed at the facility, which was Carlsberg’s first brewery to be constructed outside of Denmark. It is also 175 years since the company’s foundation. These milestones coincide with the Group’s commitment of RM110m to upgrade the brewery – the largest investment the Shah Alam site has received in three decades.

Though the specifics of the renovations are yet to be revealed, the focus appears to be on efficiency and sustainability. The hope is that modernisation will reduce water and energy wastage, as well as providing greater flexibility in terms of packaging options.

During his visit, ‘t Hart said: “Malaysia is one of the key growth drivers in Asia for the Group. I’m very proud that Carlsberg Malaysia is agile, resilient and safely navigated the storm and emerged stronger than ever, throughout the pandemic.”

Indeed, operations in Malaysia were severely hindered during national lockdowns as the brewery was forced to shut for a total of 122 days in 2020 and 2021.

Mandatory weekly swab tests and an accelerated vaccination programme for the 600-strong workforce are two of the measures being taken to control cases.

‘t Hart acknowledged that there are still difficulties ahead: “The second half of the year poses three main challenges – the uncertainties of Covid-19, impact from the war in Ukraine, and growing global inflation.” However, he expressed “full confidence” in Carlsberg Malaysia’s resilience to these obstacles.

Carlsberg’s response to the invasion of Ukraine has been comprehensive – 13% of the Group’s 2021 earnings came from Russia and Ukraine.