April 25, 2007

Nestle Vietnam sells Ha Tay milk plant to Anco Food

Nestle Vietnam has decided to sell its Nestle Ba Vi Milk Plant in northern Ha Tay Province to Anco Food Company, reports the Vietnam News Bridge.

Anco will take over the plant's operations in April.

A representative of Nestle Vietnam said the plant sale was due to the company's shifting focus on developing its key products in Vietnam.

Nguyen Thi Hong Mai, Deputy General Director of Anco, said the company will continue to produce and distribute yogurt as well as sterilized milk products under the Nestle trademark until April 2008. Those products will bear the brand-name of Ancomilk thereafter.

With total registered capital of nearly US$2 million, Nestle Ba Vi Milk Plant began its operations in 1997 with yogurt and sterilized milk.

Anco is also building a fresh bread plant in Ha Tay Province, with initial investment of VND24 billion ($1.5 million) which will start in July.

Pierre Schaufelberger, General Director of Nestle Vietnam, refused to disclose the price of the purchase.

Nestle Vietnam is running a factory in the southern province of Dong Nai which started operations in 1995 that produces Nescafe, Milo, Nestea and Maggi brands.