This is part of the plan by processed chicken and chicken-related product supplier to expand overseas, especially to markets with large potential like Singapore and Japan.
Under the agreement, a private limited company, NHF Manufacturing (M) Sdn Bhd, will be set up to manufacture, market, distribute and sell processed meat-based foods.
“The JV agreement will enable Lay Hong to leverage on NH Food’s research and development (R&D) as well as manufacturing skills, to enable overseas market penetration.
“In addition, the JV is expected to improve Lay Hong’s financial position in the long run and transform from a poultry player to an integrated food company,” said Lay Hong executive director Yap Chor How after the JV signing ceremony.
Meanwhile, meat processor NH Foods will be able to enhance its business presence in the South-East Asian market through the JV company.
In Malaysia, the poultry sector is the biggest component of livestock industry and it is supplying about 81% of total meat and almost 111% egg demand by the domestic market.
Malaysia is the third largest producer of poultry meat in the Asia-Pacific region.
Did you find this article insightful?