Lay Hong confident of strong financial performance in financial year 2019
KLANG: Lay Hong Bhd (LHB) is confident of delivering a significant rise in performance for the financial year ending March 31, 2019 (FY19).
This will be derived from a new joint venture ( JV) plant with Japan NH Foods Ltd (NHF) which is expected to commence operations by 2018.
Group executive director Yap Chor How said the new manufacturing facility in Kapar, Selangor, would begin construction by the first quarter of next year.
He said the new plant operating under NHF Manufacturing Sdn Bhd (NHFM), a new JV company set up in May 2016, is set to produce 2,000 tonnes of processed foods per month.
NHFM is 49 per cent held by LHB and 51 per cent by Japan NHF.
“The products will be certified by the Department of Veterinary Services and halal certified by JAKIM (Department of Islamic Development Malaysia).
“Some of the capacity produced at the new plant will be exported to Japan, Singapore and Middle Eastern countries, leveraging Malaysia’s halal certification and NHF’s network and expertise,” he told a press conference after launching five variants of ‘Nippon premium NutriPlus’ frozen food products yesterday.
Yap said while NHF was eyeing to expand its halal market via Malaysia by capitalising on its NutriPlus brand, LHB was keen to tap into NHF’s innovation expertise.
“Going forward, LHB will be noted as food producer, as more innovative and healthy products, with Japan’s quality control and food safety standards, can be expected to be produced from the new plant.
“Our market share for processed food and ready-to-eat food segment is expected to hit above 10 per cent after 2018 from around six per cent at present,” he said.
Meanwhile, Yap said LHB’s financial performance for FY2017 is expected to be on par or better than that of FY2016.
LHB’s current plant at Tanjong Karang, Selangor, which currently running at 70 per cent capacity is also expected to reach its full capacity of 2,000 tonnes per month in 2018 as the company is expanding its core business, he added.
NHF executive officer Hedeki Fujii at the same press conference said the capital expenditure for the new JV plant is estimated at RM45 million.