KUALA LUMPUR: Can-One Bhd aims to raise its annual production capacity of plastic jerry cans by 20% to more than 19 million units this year to meet growing demand, said executive director Chee Khay Leong.
“We will be raising the output following rising orders from our customers who are making products for the African and Middle East markets,” he said after the company AGM yesterday. Its clients also export to China, Australia, New Zealand and India.
As market leader in the edible oil industry, commanding almost 75% share, Can-One had targeted to replicate this success by expanding into new market segments.
Thus, the company last year acquired F&B Nutrition Sdn Bhd, which manufactures and distributes dairy and non-dairy products.
Managing director Yeoh Jin Hoe said Can-One had invested RM1mil in new machinery in the first quarter to boost production. Last year it spent RM17mil in capital expenditure.
For the first three months ended March 31, the company's pre-tax profit dropped 50% to RM1.9mil from RM3.8mil in the previous corresponding period. Chee attributed the decline to changes in the company's sales mix and higher operating costs.
On growth expectation, Yeoh said it would be moderate this year, given the strong growth recorded in the past five years.
“Given the growing demand for halal products, and with the Government's plan to make Malaysia a global halal hub, the company looks forward to benefit from this market,” he said.