Krones is taking overall responsibility for the construction of an entire brewery for the first time, on behalf of the Vietnamese brewer, Saigon Beer, Alcohol and Beverages (Sabeco).

The US$120m project will see a new brewery with an initial capacity of 1m hls developed in the Cu Chi industrial zone of Ho Chi Minh City. Production is scheduled to begin by mid-2007.

The German bottling and packaging machinery specialist is the main contractor, handling overall project management, with responsibility for both equipment and the construction work.

State-owned Sabeco already has a brewery in the centre of Ho Chi Minh City, as well as others around the country. The company has around 30% of the domestic beer market, with an annual output in the region of 5m hls.