Building of $3.8m brewery begins

via CAAI News Media

Thursday, 18 March 2010 15:00 Chun Sophal

CHIP Mong Group broke ground on construction of its first brewery Wednesday, aiming to produce millions of litres of beer per year in partnership with Germany’s Ziemann Group.

Leang Chhun, Chip Mong director general, said the company would spend about US$3.8 million to build the facility, in Cheoung Ek Commune, in the capital’s Dangkor District.

“We hope that the factory will be able to brew high-quality beer to export to national and international markets in September 2011,” he said at the construction site’s opening.

Andreas Benischek, managing director of Ziemann Asia-Pacific, said at the ceremony that the company will share more than 150 years of brewing experience with its Cambodian partner.

“I am confident that Chip Mong Group will be successful in this new business and will play a very important role in developing the brewery industry in Cambodia by producing a world-class, quality beer,” he said.

Leang Chhun said 80 percent of the company’s raw materials will be imported from Germany and Australia. The rest will come from Cambodia.

“We know that it is not easy to compete for markets with products of other highly specialized producers,” Leang Chhun said. “However, based on the condition of quality the company has already set, we are still confident in joining market competition.”

The firm will produce beer under three brand names for distribution to top local markets and for export to international markets, such as France and Asia, Leang Chhun said.

Chip Mong and Ziemann invested US$60 million together in December 2009, with plans to brew between 100 million and 200 million litres per year.

Cambodia consumes 200 million litres of beer per year, according to Chip Mong figures, 30 percent of which is imported.