Home » FBD: F&N Invests U$176.5 Million In Two New Dairy Plants (Thailand)

FBD: F&N Invests U$176.5 Million In Two New Dairy Plants (Thailand)

News From : DagangHalal.com (02 Nov 2009)

by FoodBizDaily.com staff writer Bangkok

November 02 2009 – Fraser & Neave Holdings Bhd (F&N) have recently made a bold move, investing $176.5 million for two new dairy plants to serve rising demand and be poised to become the region’s biggest canned milk producer.

After the completion of the plant in Rojana, Thailand, Fraser & Neave will pour another $103 million into a new dairy plant in Pulau Indah, Malaysia. The new plant (expected to be completed in 2012), will be equipped with cutting edge technology and an annual capacity of more than 14 million cases of canned milk.

Now with an annual capacity of 25 million cases at both the Rojana and Pulau Indah plants, F&N canned milk business should be able to generate annual sales revenues of over $571 million. This investment will allow F&N to effectively meet growing demand and to realize its ambition to become a regional major player.

“We are now able to extend our regional footprint into the Indochina region [Burma, Thailand Cambodia, Laos and Vietnam] with its over 200 million population,” according to Chief Executive Officer Tan Ah Meng. “The Pulau Indah plant enables F&N to gain a critical foothold in the Malaysian halal market. Due to this, opportunities to cater to the fast-growing halal markets in the Middle East, Africa and Indonesia are more than viable,” states Mr. Tan.

In February 2007, F&N Holdings completed a buyout of Nestle’s canned milk, UHT (ultra-high temperature) and chilled dairy and juice businesses for $91.2 million. F&N dairy division is now the growth engine of the group, accounting for 52% of revenue and 40% of operating profit.

Leave a Reply

Your email address will not be published.