Vietnam pepper plant opens for business
commercial shipments from its new pepper plant in Vietnam; it
claims the new facility makes it the only processor in the main
pepper-producing countries with steam sterilisation capabilities.
This is a natural method of sterilisation using high temperature steam. It is often a preferred alternative to Ethylene Oxide (ETO), which is a chemical method of sterilisation, and irradiation. Europe does not allow imports of ETO sterilised products and requires steam sterilisation for products such as peppers. Vietnam is the world's biggest pepper country. Statistics from 2003 indicated production in the region of 85,000 tons per year, most of which is destined for export. Indonesia is in second place producing 67,000 tons, followed by India with 65,000 tons. VKL's Vietnamese subsidiary, known as VKL Vietnam, was incorporated in December 2006, and the facility is located at the Vietnam-Singapore Industrial Park II in Binh Duong province, near Ho Chi Minh City. This is close to the main pepper growing areas, which the company says gives it the advantage of being able to offer pepper products at competitive prices. The company did not release any specific data about its pricing, nor the capacity of the new facility. But it did say it has a global delivery model by which it aims to be close to both raw material sources and its customers. VKL chairman J V Mariwala said the new facility "will help VKL achieve its growth plan and its commitment to delivering enhanced value to all its shareholders". The company supplies spices, seasonings, flavours and fragrances to fast food, snack food, processed food, ready-to-eat and other companies in the food sector. It says it counts a number of Fortune 500 companies amounts its client base, which spans 40 countries. Europe accounts for 32 per cent of its total pepper exports, but VKL expects this proportion to increase as the Vietnam plant is geared to fully meeting Europe's quality and sterilisation standards for pepper. Its initial shipments from Vietnam will largely go to food and seasoning manufacturers and packers. However, a company spokesperson told FoodNavigator.com it might perhaps also progress to serve the retail sector as well. The seasonings and flavours and fragrances and private-label strings to the business are relatively recent, having been inaugurated in the last three years. VKL is a subsidiary of India-based Kanji Moorarji Group, which has a turnover of US$150m (€102m).
