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Leong Hup plans new plant in Negri halal hub

| 11/03/2008 | Reply

Leong Hup plans new plant in Negri halal hub

MUAR: Leong Hup Holdings Bhd (LHH) plans this year to set up a new
chicken processing plant in the halal hub in Pedas, Negri Sembilan. 

Executive director Tan Sri Francis Lau Tuang Nguang said the facility
would further strengthen the company’s position in downstream
activities. 

He said the plant would produce processed chicken meat foodstuff such
as frankfurters, nuggets and chicken meatballs for the domestic market. 

“Demand for processed chicken foodstuff is on the rise as consumers find them quite convenient,” Lau told StarBiz after the company EGM recently. 

He said the company was always on the lookout to expand its processed
chicken foodstuff by regularly introducing new products for consumers.  

At the EGM, shareholders approved LHH’s proposed acquisition of 45 shop
office and apartment units within a building known as Wisma Westcourt
in Jalan Kelang Lama, Kuala Lumpur, from Leong Hup Management Sdn Bhd
(LHM) for RM18mil cash. 

They also approved the proposed disposal by wholly-owned subsidiary
Leong Hup Poultry Farm Sdn Bhd (LHPF) of two pieces of leasehold land
in Gopeng, Perak to Sri Medan Duck Farm Sdn Bhd for RM6mil cash. 

The property purchase consideration will be payable to LHM by way of
offsetting the outstanding debt owed by LHM to LHH. LHPF will use the
sale proceeds as additional working capital. 

“The local poultry industry is still profitable but the main challenge
is the rising of raw materials due to high oil price in the world
market,” said Lau. 

He said people still ate a lot of chicken meat and local consumption of
the meat on average 5% yearly. Malaysians and Singaporeans consumed
about 35kg and 37kg each respectively as it was the cheapest source of
meat protein. 

Lau said the company also planned to set up more Ayam A1 retail outlets
selling fresh and roasted chickens from the existing seven outlets.

Category: Asia, Meat & Poultry

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