|© Reuters. Exclusive: Philippines' San Miguel to invest $1 billion for 10 new breweries|
MANILA (Reuters) - Philippines conglomerate San Miguel Corp (PS:SMC) is planning to invest at least $1 billion (£764.18 million) in the next two years to build 10 breweries in and outside the country, senior company executives said on Wednesday.
Banking on strong consumer demand in one of Asia's fastest growing economies, the maker of San Miguel Pale Pilsen and Red Horse beer is setting up eight breweries around the country, San Miguel President Ramon Ang told Reuters in an interview.
San Miguel is also looking to open its first production facility in the United States and build a second plant in Vietnam, Ang said. The conglomerate is Philippines' biggest brewer and its brewery business is partly owned by Japan's Kirin Holdings Co Ltd (T:2503).
Each new brewery would have an annual capacity of 1-2 million hectoliters and would cost at least $100 million, San Miguel Chief Finance Officer Ferdinand Constantino said in the same interview.
The conglomerate has pursued an aggressive expansion since 2008 to bolster revenues, adding infrastructure, mining, petroleum and power assets to its core food and beverage businesses.
San Miguel is also on track to sell up to $3 billion worth of shares in its food unit in the fourth quarter despite recent market volatility, the executives said.