Business

Friday October 30, 2009

F&N targets RM3.8bil sales with new plant

By NIK NAIZI HUSIN


BENTONG: Fraser & Neave Holdings Bhd (F&N) is targeting annual revenue of at least RM3.8bil compared with RM3.6bil achieved in the year ended Sept 30, 2008 (FY08).

For FY09, it expects about 5.6% rise in revenue, or RM200mil, over FY08 figure. For the nine months ended June 30, it reported revenue of RM2.75bil.

Chief executive officer Tan Ang Meng said the target could be achieved with the increasing demand for its products as well with its plan to produce more types of drinks next year and its new mineral water-bottling plant in Bentong.

Tan said the new plant was the company’s second such facility to cater for the growing demand for bottled water in the Peninsular.

Tan Ang Meng (left) and Fraser & Neave chairman Tengku Syarif Bendahara Perlis Syed Badarudin Jamalullail Tuanku Syed Putra Jamalullail checking a production line at the Bentong plant

“Our first mineral water plant in Matang, Kuching, which started operations in 2006, is now well-established despite it only catering for east Malaysia market.

“Our RM12mil plant here will strengthen the group’s leadership position in the soft drinks industry and the bottled opening of the plant, which commenced operations in July.

Tan said with both plants in operation, F&N expected its bottled water division to achieve revenue of RM100mil in five years.

The two plants are managed by Borneo Springs, a wholly-owned subsidiary of F&N Coca-Cola (M) Sdn Bhd, the manufacturing arm of F&N’s soft drinks division.

Tan said Borneo Springs was the largest producer of bottled water in Sabah and Sarawak.

He said the Bentong plant would strengthen F&N’s dominance in the ready-to-drink market and reinforce its position as a major bottled water producer in Malaysia.

“F&N recognises the potential in packaged water and this new plant will boost Borneo Springs’ capacity by 50%. At full capacity, the plants can produce up to seven million cases per annum,’’ he said.

Located on a 6.65-acre site, the Bentong plant is equipped with the latest technology to meet the highest global standards.

According to Tan, plans are underway to set up another advanced production line to further enhance its capacity.


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