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New US$51m can factory in Cambodia gets go ahead
A new drinks canning factory has just an investment of US$50.7 million after being approved by the Council for Development of Cambodia (CDC).
According to officials, the new factory, named Baosteel Can Making (Cambodia) Co, will be based in the Kampong Speu province and has received fiscal support from investors after gaining its CDC approval. The factory will reportedly help many businesses, including Asian brewers and soft drinks manufacturers, in their search for more competitively-priced packaging options as well as create over 150 jobs for Cambodian people.
Vei Samnang, governor of Kampong Speu province, told the Khmer Times, that the company welcomes the project as it would help develop the local economy by producing and supplying cans to local breweries and drinks makers across Cambodia.
Samnang noted how, recently, rising oil prices were driving up the cost of packaging and with only one can supplier currently dominating trade – namely the Gebo Cermex which has expanded the lines at Cambrew – businesses have little choice but to absorb these starkly rising costs. However, the alternative canning line joining the fold will shake things up somewhat and help drive down those prices.
“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. But added that he is yet to meet the investors but welcomed them and hoped it will help create jobs and income for the Cambodian people.
Ratana Hoeung, finance manager of Vattanac Brewery, which produces Vattanac and Krud beer brands, said: “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.”
Hoeung reminded, however, that quality of packaging needed to still be assessed for companies to consider using Baosteel and added: “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”.
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