Vinamilk boosts overseas presence

May 25, 2016 | 20:23

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Vietnam Dairy Products Joint Stock Company (Vinamilk) has completed the $3 million sale of its remaining shares in US dairy and food company Driftwood Dairy Holding Corporation and inaugurated a $23 million dairy processing plant in Cambodia, attesting to Vinamilk’s efforts to extend its global reach.

The sale increased Vinamilk’s ownership rate in Driftwood to 100 per cent. In December 2014, Vinamilk spent $7 million on buying a 70 per cent stake in the US dairy processing plant.

Driftwood Dairy is headquartered in California. The company specialises in producing and distributing dairy, fruit juice, and fast food products, both in the US and on foreign markets.

Along with Driftwood, Vinamilk currently holds a 22.8 per cent stake in Miraka factory in New Zealand.

Regarding its new dairy processing plant in Cambodia, licensed in January 2014, the 30,000 square metre plant was invested by a joint venture between Vinamilk and Cambodian Angkor Dairy Products Company Limited. The plant’s total capital is $23 million, 51 per cent of which is Vinamilk’s equity capital and the remaining 49 per cent coming from the Cambodian company.

The plant’s construction was kicked off in May 2014.

The plant has a designed annual capacity of 19 million litres of milk, 64 million jars of yoghurt, and 80 million bottles of condensed milk.

The plant’s revenue is expected to reach $35 million in the first year of operation and $54 million in 2017.

Vinamilk currently has 25 subsidiaries and 13 dairy production factories, employing a workforce of over 6,000 people throughout Vietnam. The company’s products are present in more than 40 countries over the world.

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