F&N to meet growing Sabah, Sarawak demand
New UHT line to reduce RM2.8mil logistics cost annually
PETALING JAYA: Fraser & Neave Holdings Bhd’s (F&N) new RM31.5mil ultra-high temperature (UHT) processing line is projected to meet the growing demand for its products in Sabah and Sarawak as well as reducing its logistics cost by RM2.8mil annually over the next decade.
The Kuching-based UHT processing line, which is the first-of-its-kind in Sarawak, will be able to support an additional capacity of 3.4 million cases a year.
F&N chief executive officer Lim Yew Hoe is optimistic that the food and beverage company will be capable of serving the local market and improve its environmental footprint, following the launch of the new UHT line.
“Localising production has always been an integral focus for the F&N group as it enables us to be part of the local community. This 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,” Lim said in a statement on the facility’s launch, which was officiated by Sarawak chief minister Datuk Amar Abang Johari Tun Openg.
The cost of the UHT processing line was part of the RM300mil capital expenditure budgeted for a period of two years in tandem with the company’s plan to ensure its business sustainability moving forward.
As part of its commitment to support the environment-friendly agenda, all F&N UHT drink cartons and packets, including those produced on the new line, are made from Forest Stewardship Council (FSC)-certified packaging (FSC is an international non-profit organisation responsible for the management of the world’s forests). The company is also planning to roll out the first installment of its recycling initiative in Kuching, following the implementation in Shah Alam, Penang and Seberang Prai.