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Coffee producer signs biggest equipment deal

16/01/2008 -- 5:21 PM

Ha Noi (VNA) – Local coffee producer and exporter Thai Hoa Corporation on January 15 inked a 14.89 USD million contract to buy a GEA Niro A/S instant coffee production line for its in-house plant in Lam Dong province.

The installation and transference of spray dryers, freeze dryers, extraction materials and heating and cooling should take no longer than one year to complete.

It is the largest deal of its kind between Viet Nam and Denmark and is expected to improve the quality and market share for instant coffee products "made in Viet Nam" in the global market.

Viet Nam’s coffee has natural quality, and with better technology both the quality and value of instant coffee would be better, said Deputy Division Manager of Food and Dairy Sten Warburg.

GEA Niro A/S, a leading group in industrial drying technology, does not plan to become strategic investor for the Thai Hoa Corporation.

“This contract will supply basic equipment for the biggest and most modern coffee processing complex.” said Nguyen Van An, Chairman of Thai Hoa.

Last year, Viet Nam fetched 1.8 billion USD from coffee exports; however, instant coffee only contributed 4 percent, with 96 percent belonging to other coffee-related products.

So far, there are only three instant coffee producers: Trung Nguyen Coffee, Vinacafe and Thai Hoa. In the near future, Vinamilk also plan to enter this market. -Enditem

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