Fraser & Neave plans RM300m capex over 2 years
KUALA LUMPUR: Fraser & Neave Holdings Bhd has allocated 300 million ringgit in capital expenditure over the next two years to boost production capacity and improve its operating cost structure.
Fraser & Neave’s Bt300 million (36.24 million ringgit) new filing and packaging line for evaporated milk at its plant in Thailand will start operations in March.
Another 45 million ringgit will be channelled into a new manufacturing line at its existing Shah Alam plant.
Speaking to reporters after its 54th AGM on Thursday, the group CEO Lim Yew Hoe said the investment in the new line in Shah Alam was necessary to meet growing demand for its ready-to-drink beverages.
The new line, he said, would be operational by June this year, and would boost its production of bottles by 40 per cent a year, and would be in time to meet additional demand during Hari Raya.
“Despite the challenging market conditions, and less than favourable forecasts, we are taking the contrarian view and see this as an opportune time to invest in expanding our operations and capacity.
“In fact, the economic slowdown offers us a window of opportunity to get the best deals from suppliers, especially those from Europe and Asia, whose economies are also down,” he said.
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