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Leong Hup goes big into food processing

by 5m Editor
16 January 2006, at 12:00am

MALAYSIA - Malaysia&#39;s largest local integrated poultry company Leong Hup Holdings Bhd has embarked on aggressive expansion plans to boost revenue and market share. Its executive director Datuk Francis Lau Tuang Ngang, in disclosing this, said the company had set aside some RM40mil for expansion and envisaged its net profit to grow by 15% and 20% for the financial ending March 31, 2007. Leong Hup will also be setting up a new cooked-food and food-processing plant in Plentong, Johor Baru, and a farm and hatchery in Kelantan this year. “We have acquired a 8.28-acre land in Plentong for RM6.49mil from Ratuan Sutera Sdn Bhd to build our plant,” Lau said, adding that the company had allocated RM20mil for the new plant. He said the company paid RM4.3mil upon signing the sale and purchase agreement and the balance of RM2.19mil would be paid three months thereafter. The fund is internally generated. “The acquisition of this property is in line with our future expansion into ready cooked poultry products, further food processing activity, as well as cold room and warehouse. This strategic location is suitable for the export or distribution of our poultry products,” he said. “The new plant is expected to be ready by year-end. We do not expect production to commence until the end of this or early next year,” he told StarBiz. <i>Source: The Star</I>

5m Editor