F&NHB installs new UHT processing line in Kuching
KUCHING: Fraser & Neave Holdings Bhd (F& N HB) is poised to meet growing demand in East Malaysia with the installation of a new RM31.5 million ultra-high temperature ( UHT) processing line at its plant here.
This first- of-its kind UHT line in Sarawak will allow the company to capture increasing demand with an added capacity of 3.4 million cases a year.
The facility was officiated by Chief Minister Datuk Amar Abang Johari Tun Openg yesterday.
F& N HB chief executive officer Lim Yew Hoe said the new line would better position the group to serve the local market and improve its environmental footprint.
“Localising production has always been an integral focus for the F& N Group as it enables us to be part of the local community. Thus, indirectly helps us to better understand the needs of our customers in the local market.
“Furthermore with a plant in Kuching, we can minimise the need to ship finished goods from peninsular Malaysia which will substantially reduce our carbon footprint,” he said at the launching ceremony.
Lim said the investment for the line was part of over RM300 million capex budgeted for two years to ensure the sustainability of the group’s business for the future.
The mew line, he said, is expected to offer the group an estimated annual savings of RM2.8 million in logistics cost over the next decade.
On the environment front, Lim said the group has also made a commitment to use more environment-friendly packaging solutions.
“All F& N UHT drink cartons and packets, including those produced on the new line, are made from forest stewardship council ( FSC) certified packaging,” he added.
He said this year the company is set to expand its recycling initiative in the state, adding F& N HB is working alongside municipal councils and Education Department to roll out the first instalment of the programme in Kuching.
Lim said F& N HB has a significant presence in Sarawak, supporting over 7,800 outlets throughout the state.
Besides the soft drinks operation, the company also owns and operates Borneo Springs, a mineral water company.
He said the group currently employs over 400 Sarawakians, and over the last 50 years has trained and developed local talent that have contributed to the continuing growth of the company.
He said F& N HB’s total investment in the state amounted to over RM100 million.
“Our operation in Kuching is one that we are proud of. Over the years, the plant has become exemplary for all our other production facilities.
“Within this small 7.4- acre site, we have a carbonated soft drink (CSD) canning line, a CSD polyethylene terephthalate ( PET) line, a cordial line, a bag-in-box ( BIB) line and now we have a brand new UHT line.
“Despite its size, it is a fullfledged plant, and certainly one with the most sophisticated warehouse facility,” he said.
Earlier, F& N HB chairman Tengku Syed Badarudin Jamalullail said the launch marked a significant market for the group and a potential regional centre to expand their export business.
He said F& N HB commenced operations in Kuching in 1966 with one production line with a capacity to produce 567,000 cases per year.
The company has since grown its operations and sales manifold.
In the last financial year, sales volume in East Malaysia accounted for 13 per cent of the group’s revenue in Malaysia.