Texchem Resources Bhd (TRB) plans to pump up to RM100mil into its newly-formed food business division by 2010, according to group executive chairman and president Datuk Seri Fumihiko Konishi.
An initial RM34mil would be spent on a seafood processing and manufacturing facility in Myanmar, which would produce surimi and fish meal products for export, he said.
The plant will be completed in August and be ready for commercial production in September, Konishi said.
Konishi told reporters after signing an agreement to acquire Sea Master Trading Sdn Bhd for RM14.56mil that the group also planned to establish seafood processing and manufacturing facilities in Scotland and Portugal.
Some RM10mil will be allocated for each of the plants. We are targeting the facility in Scotland to begin operation in October this year and to establish the facility in Portugal by the end of 2004. The plant in Portugal will serve the European continent, while the other facility will cater to customers within Britain, he said.
Konishi said the acquisition of Sea Master was a landmark in the groups 30-year history.
The purchase enables us to form the groups fourth division, which specialises in food, alongside its industrial, family care, and packaging divisions, he said, adding that a fifth division, consumer goods, was planned for 2005.
Konishi said Sea Master would be integrated under Texchem Food Sdn Bhd, a wholly-owned subsidiary of TRB. The acquisition exercise is scheduled for completion in May.
The group currently has two food businesses Seapack Food Sdn Bhd and Sushi King Sdn Bhd, he said.
Konishi said Sea Master, which had been achieving sales growth of 15%-20% per annum since its establishment in 1979, was expected to spearhead TRB income for the 2003 fiscal year ending Dec 31.
We expect Sea Master, which has a strong presence in Penang, Perak, and Myanmar, to help the group realise its goal of generating annual sales revenue of RM3.8bil or US$1bil by 2010,'' he said. Sea Masters immediate objective is to work towards achieving RM500mil revenue by 2005.
What do you think of this article?