AGV, a Chinese Beverage Producer to Tap Vietnam`s Beverage Market

 Taipei, Jan. 6, 2010 (CENS)--AGV Corporation, one of Taiwan `s leading listed producers of food stuff and beverage products, has resolved to tie up with Vietnam`s state-run wine firm for cooperative marketing through the assistance of Kai Chieh International Investment Ltd., one of the state-run wine firm`s big stakeholders. AGV is also considering setting up a plant in Vietnam to tap the beverage market there.

To snatch up capital gains, AGV will invest NT$100 million (US$3.125 million at US$1:NT$32) in Kai Chieh before it is listed at the Emerging Market under the Over-the-counter Securities Market. AGV believed with the assistance of Kai Chieh, it would be able to speed up the pace of cooperating with the state-run wine firm in Vietnam.

AGV noted it is having talks with three food producers located in China, including the internationally renowned Coca Cola, for cooperation. The company would cooperate with the interested firms operated in China to expand marketing channels and set up plants of PET (polyethylene terephthalate) aseptic cold-filling beverage and hot-filling beverage there. By cooperating with internationally renowned firms, AGV aims to see increased OEM (original equipment manufacturer) orders in the lucrative China market.

Coca Cola Taiwan has long been one of AGV`s most important customers. Several days ago, Coca Cola`s subsidiary in China has paid a visit to AGV`s plant, prompting speculation that AGV will expand cooperation with Coca Cola.

In addition to Coca Cola, another internationally renowned firm Unilever is one of the most important clients of Taiwan First Biotechnology Inc., one of AGV`s subsidiaries. Thanks to increased orders from home and abroad, Taiwan First Biotechnology is expected to score after-tax earnings of between NT$2.5 (US$0.078) and NT$3 (US$0.093) per share in 2009, which will contribute much to AGV`s earnings.