MFM investing RM100m for new lines, facilities
Malayan Flour Mills Bhd (MFM) is investing a total of RM100 million in financial year 2024, of which RM32 million will be used to install a new milling line in Lumut.
MFM chairman Datuk Oh Chong Peng said the new milling line will have the latest cost-effective technology.
This will raise the existing 1,800 million tonnes daily capacity by another 600 million tonnes.
“The balance of RM60 million will be used to install flour silos and flour blending facilities in Mekong Flour Mills Ltd in southern Vietnam,” he said in the 2023 MFM annual report.
Oh said MFM had a capital expenditure (capex) of RM34.8 million for financial year 2023; the bulk of which was invested in 14 additional wheat silos in its Mekong Flour Mills to double its capacity from 50,000 tonnes to 100,000 tonnes and to enhance its warehouse and workshop.
In northern Vietnam, MFM’s Vimaflour Ltd also completed the installation of 18 additional wheat silos with an extra storage capacity of 65,000 tonnes in financial year 2023, Oh said.
As for its poultry integration segment, most of the capex was invested to raise the capacity of both the wastewater treatment and rendering facilities at its primary processing plant. The segment intends to use about RM218 million to upgrade and expand breeder farms and automate the primary processing plant.
The poultry integration segment saw lower sales in financial year 2023 due to a brief change in consumer behaviour towards quick service restaurant chains.
The situation allowed MFM to develop a new sub-segment in the food services channel.
Furthermore, MFM aims to take the synergistic partnership with Tyson International Holding Company to the next level.
“Firstly, we hope to work towards setting up technology-enabled farms for both parent stocks and broilers to help ensure a sufficient supply of broilers to our processing plant in Sitiawan, Perak.
“Secondly, we aim to leverage their competitive edge and technical expertise to improve our operations, venture into new export markets, and undertake product development initiatives.”
Meanwhile, for the flour and grain trading segment, MFM will continue to build relationships with suppliers to secure an uninterrupted supply of raw materials to production facilities in Malaysia, Vietnam and Indonesia.