FrieslandCampina invests in expansion of production capacity in Vietnam

18 May 2010

FrieslandCampina is investing 12 million US dollar (around 8.8 million euros) in a hefty expansion of production capacity at the location in Binh Duong (Vietnam). The expansion is necessary to meet the increasing demand for dairy products under the Dutch Lady, YoMost and Friso brands. The factory is being expanded and designed according to the latest techniques and will therefore comply with the highest quality standards. It is expected to be fully operational at the end of 2012.

‘We’ve reached the limit of our production level in the present factory. To meet the rising demand we need to increase capacity. In the past three years sales grew by an average of 10 per cent per year. Sales also showed robust growth in the first few months of this year. We’re therefore delighted that the Executive Board has given the green light for the realisation of the expansion’, says Jan Bles, managing director of FrieslandCampina Vietnam.

Two production locations
The production plant in Binh Duong was FrieslandCampina’s first in Vietnam and has been operational since 1996. FrieslandCampina manufactures dairy products under the Dutch Lady, YoMost and Friso brands at this factory. Owing to the strongly growing demand for our products, we’ve reached the limits of our production capacity. Installed capacity at FrieslandCampina Vietnam’s second factory in Ha Nam, which has been operating since 2008, has also reached its full potential. We therefore set up the “Master Plan Processing” for the production location in Binh Duong in 2009. The rate at which the sizeable investment project will be realised also depends on the development of the anticipated demand and is expected to be finalised by the end of 2012 at the latest.

Success factors
FrieslandCampina Vietnam is experiencing strong growth. The loyalty of staff members, their hard work and the three strong brands: Dutch Lady, YoMost and Friso are the most important success factors. Through continuous investment in innovation, marketing and an advanced and dense distribution network, these products are available every day throughout the country.