Haisan expects better years ahead

INTEGRATED ice and industrial refrigeration maker and service provider Haisan Resources Bhd expects all-round improvement in its core businesses in the next few years, managing director Ong Chin Yet said. 

In an interview with XFN-Asia, he said Haisan Resources was confident of achieving earnings growth of 15%-20% a year over the next five years, given its current expansion plans. At present, overseas operations account for about 7% of sales.  

Haisan Resources posted a 2004 net profit of RM2.22mil on sales of RM46.34mil. 

Ong said the company was investing some RM26mil to expand its temperature-controlled logistics operations in the Philippines and China to meet rising demand. 

With the expansion, the storage capacity of the overseas operations would rise to 8,000 pallets, from 1,700 at present, he said. One pallet space is equivalent to a ton. 

Capacity at the company's Guangzhou, southern China, plant was raised this month, and additional space would be available in July to meet the requirements of clients Walls and Nestle, he added. 

“We're also talking to other companies in China on handling their temperature-controlled logistics operations,” he said, while declining to elaborate. 

Walls and Nestle also have operations in other parts of China, and there was a good chance that the two multinationals would outsource more temperature-controlled logistics operations to Haisan Resources, he added. 

Ong said, as part of moves to become a leading regional third-party temperature-controlled logistics player, Haisan Resources would also be looking to expand into other places, such as Indonesia, Thailand and Indochina. – AFX-Asia  

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