F&N invests RM350m in new dairies plant


KLANG: Fraser & Neave Holdings Bhd (F&N) is investing RM350mil
in its new dairies manufacturing plant to cater to the increase in
demand, besides positioning itself to become a world-class regional
food and beverage player.

Chief executive officer Tan Ah Meng
said the latest investment would also make F&N the region’s biggest
canned milk producer.

“Our existing plant in Petaling Jaya can’t
cater to the increased demand for our dairy products. We will move to
this new plant once it is completed at end-2012. With the latest
technology installed at this plant, it will meet the highest standards
of food safety and production efficiencies,” he said yesterday at the
ground-breaking ceremony of the new plant.

F&N recently completed its new dairies plant in Rojana, Thailand, at a cost of RM250mil.

said that after the acquisition of Nestle’s canned milk business in
February 2007, the F&N dairies division was now the pillar and
growth engine of the group, accounting for 52% of revenue and 40% of
operating profit.

He said the new plant, with an annual capacity
of more than 14 million cases of canned milk, combined with the plant
in Thailand, should be able to generate sales revenue of over RM2bil a

“This will also ensure that F&N is not only able to
effectively meet the domestic consumption but also has the scale and
flexibility to become a major regional player.

“We are now able
to extend our regional footprint via Thailand into the Indochina
region, comprising Myanmar, Cambodia, Laos and Vietnam, with a
population base of over 200 million,” Tan said.

He said the
Pulau Indah plant would also enable F&N to leverage on its location
in the dedicated halal hub to build on and expand export opportunities
to the fast-growing halal markets in the Middle East, Africa and

“Exports currently contribute about 12% of total
turnover and, with the completion of the new plant, we hope to increase
our exports to 20%,” he said, adding that the company expected to
recoup its investment in the two plants within five years.