Masan MEATLife opens $77.6m meat processing complex in Long An, acquires 51% of poultry company
Masan MEATLife, a subsidiary of Masan Group, on October 3 commissioned the VNĐ1.8 trillion (US$77.6 million) MEATDeli Saigon Meat Processing Complex in Long An Province.
Masan MEATLife, a subsidiary of Masan Group, on October 3 commissioned the VND1.8 trillion (US$77.6 million) MEATDeli Saigon Meat Processing Complex in Long An Province.
It also announced it would enter the poultry meat market by buying a 51 per cent stake in 3F VIET Joint Stock Company, a leading player in the industry, for VND613 billion ($26.4 million).
The factory inauguration was attended by Deputy Prime Minister Truong Hoa Binh, Minister of Agriculture and Rural Development Nguyen Xuan Cuong, former president Truong Tan Sang, secretary of the Long An Province Party Committee Pham Van Ranh, chairman of its People's Committee Tran Van Can, and officials from central and local agencies and departments.
Masan MEATLife CEO Pham Trung Lam said the inauguration of MEATDeli Saigon Complex and entering the poultry meat market through investment in 3F VIET are a part of his company’s vision to transform into a pure FMCG company.
“With the completion of these strategic milestones, we expect to bring breakthrough value to consumers in a much more scalable fashion and develop power brands. Our mission is to supply fresh, safe, affordable, and traceable meat products to each and every Vietnamese consumer.”
Situated in the Tan Duc Industrial Park in Duc Hoa District, the plant is designed to process 1.4 million pigs a year.
In phase 1, it will supply 140,000 tonnes of chilled meat and 15,000 tonnes of processed meat such as ham, sausage, pork floss, and others annually.
In phase 2, it will expand the processed meat output to 25,000 tonnes, and introduce new products such as blood powder, blood plasma, collagen, and bone and meat powder.
Its processing line was supplied by Dutch company Marel, the world leader in meat processing equipment, and includes an automation system with three robots.
The plant meets the BRC (British Retail Consortium) Global Standard for Food Safety, has HACCP certification for food safety, and is directly operated, supervised and tested by experienced European experts.
MEATDeli chilled meat meets the National Standards for chilled meat set by the Ministry of Agriculture and Rural Development (MARD).
It goes through ‘three-line’ quality control based on guidance from MARD and the Department of Food Safety to ensure the safety of consumers.
Expanding into chicken meat market
Talking about its strategy of investing in the poultry sector, Lam said MML is of the view poultry is the second most important source of animal nutrition in Vietnamese meals. The constraints faced by this segment are similar to pork -- sub-par productivity and quality and lack of innovative meat products.
Established in 2014, 3F VIET emerged as one of the leading domestic players with a vision to transform the poultry market with chilled packaged and processed chicken meat products.
Its platform spans the value chain, from breeding, hatcheries and meat farms to large-scale food processing and packaging, all complying strictly with environmental standards related to food hygiene and safety.
With an efficient operating model, 3F VIET hopes to generate revenues of VND1trillion ($43.1 million) with break-even EBITDA for financial year 2020.
The injection of VND613 billion will be used by 3F to expand its business and build a poultry power brand.
The deal is subject to regulatory approval.
Speaking at the inauguration, Cuong praised Masan Group for setting up such a large scale and modern meat processing plant.
The Vietnamese animal husbandry sector is good at production but has weaknesses when it comes to processing and distributing, and so the setting up of the complex is important and would help restructure animal husbandry across the value chain to offer consumers high-value products with food safety assured, he said.
MML built the MEAT Ha Nam complex, the first chilled meat processing complex in Viet Nam, in 2018 and introduced chilled meat products under the MEATDeli brand in Ha Noi.
The opening of the plant in Long An is expected to meet the increasing demand for fresh and nutritious meat from tens of millions of consumers in HCM City and neighbouring provinces, CEO Lam said.
MEATDeli products are sold through 1,700+ outlets, including VinMart and VinMart+ chains, Co.opmart supermarkets, Big C, MEATDeli stores, and others.
At the event, Masan Group donated VND5 billion ($215,614) to the province’s Rural Bridges Programme. — VNS
