Some of the Lay Hong products. IZZRAFIQ ALIAS/THE STAR (filepic)
KLANG: Lay Hong Bhd
is confident of delivering a significant rise in performance for the financial year ending March 31, 2019 (FY19).
This will be derived from a new joint-venture (JV) plant with Japan NH Foods Ltd (NHF) which is expected to start operations by 2018.
Group executive director Yap Chor How said construction of the new manufacturing facility in Kapar, Selangor, would begin by the first quarter of next year.
He said the new plant operating under NHF Manufacturing Sdn Bhd (NHFM), a new JV company set up in May 2016, is set to produce 2,000 tonnes of processed food per month.
NHFM is 49% owned by Lay Hong and 51% by Japan NHF.
"The products will be certified by the Department of Veterinary Services and halal certified by JAKIM (Department of Islamic Development Malaysia).
"Some of the capacity produced at the new plant will be exported to Japan, Singapore and Middle Eastern countries, leveraging Malaysia's halal certification and NHF's network and expertise," Yap told a press conference after the launch of five variants of 'Nippon premium NutriPlus' frozen food products in Klang in Tuesday.
Yap said while NHF was eyeing to expand its halal market via Malaysia by capitalising on its NutriPlus brand, Lay Hong was keen to tap into NHF's innovation expertise.
"Going forward, LHB will be noted as food producer, as more innovative and healthy products, with Japan's quality control and food safety standards, can be expected to be produced from the new plant.
"Our market share for processed food and ready-to-eat food segment is expected to hit above 10% after 2018 from around 6% at present," he said.
Meanwhile, Yap said Lay Hong's financial performance for FY2017 is expected to be on par or better than that of FY2016.
Lay Hong's present plant in Tanjong Karang, Selangor, which is currently running at 70% capacity is also expected to reach full capacity of 2,000 tonnes per month in 2018 as the company is expanding its core business, he added.
At the same press conference, NHF executive officer Hedeki Fujii said the capital expenditure for the new JV plant is estimated at RM45 million. - Bernama
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