Dutch Lady increases new facilities investment to RM540mil

KUALA LUMPUR: Dutch Lady Milk Industries Bhd said the estimated total capital investment for the construction of its new manufacturing facilities in Bandar Baru Enstek shall increase to RM540mil from RM340mil between 2021 and 2025.

“The increase is mainly due to the inclusion of additional capital expenditure (capex) items as well as unprecedented inflation which has significantly increased the cost of materials, fuel, and labour,” Dutch Lady said in a filing with Bursa Malaysia.

The dairy group said the construction of the new facilities would be funded through internal funds.

“The board of directors of Dutch Lady, after careful deliberation and having considered all aspects, is of the opinion that the construction of the new facilities is in the best long-term interest of Dutch Lady,” it said.