The move is part of the group’s diversification strategy to grow its ingredients business
FOOD and beverage company Food Empire is investing US$80 million in a new freeze-dried soluble coffee manufacturing facility in Vietnam.
Located in Binh Dinh province in central Vietnam, the facility will be Food Empire’s second freeze-dried soluble coffee manufacturing facility. It will also be larger in capacity, compared to its first such facility in India.
The move is part of its diversification strategy to grow its ingredients business, the group said on Wednesday (Sep 11).
When completed, the new facility will strengthen the group’s position as one of Asia’s major players in spray-dried and freeze-dried soluble coffee.
Construction will start in the first quarter of 2025 and is expected to be completed by early 2028.
Food Empire said that it chose to locate the facility in Vietnam as the country is one of the world’s largest producers of robusta coffee beans.
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The group’s chief executive officer, Sudeep Nair, said that growth from its South-east Asia segment – particularly Vietnam – has in recent years been the highest.
“We believe there is tremendous potential for even more growth and that is why we are putting focus (on) the region,” he added.
The investment will be funded by internal resources and bank borrowings.
Shares of Food Empire closed 0.5 per cent or S$0.005 lower at S$0.965 on Wednesday, before the announcement.
