Business

Saturday February 11, 2012

CCK buys RM10mil warehouse in Jakarta

By JACK WONG
jackwong@thestar.com.my


KUCHING: CCK Consolidated Holdings Bhd, which is stepping up regional expansion for its poultry business, has acquired a RM10mil warehouse in Jakarta.

Group managing director John Tiong Chiong Hiiung said the warehouse would serve as the logistic centre for CCK's manufacturing and retail businesses in the Indonesian capital.

“We are in the process of obtaining all the licencing requirements. Preliminary ground works have started and we hope to start our operation there as soon as possible,” he told StarBizWeek.

Tiong said CCK was expected to invest another RM20mil mainly in developing a suppply chain and several outlets outside the city centre.

“We see huge potentials in Jakarta. It is too early to tell the size of our operation.”

CCK group started its regional expansion two years ago with Pontianak in West Kalimantan as the first destination.

The group has invested some US$2mil (RM6mil) in a manufacturing plant and four retail stores in Pontianak. The factory produces chicken hot-dogs and burgers.

“The fifth store in Pontianak will be launched in the next few weeks,” he said.

On CCK's expansion in Sabah, Tiong said it was in the process of setting up a slaughter house.

The proposed RM3mil slaughter house will have the capacity to process 12,000 chickens a day. The group owns a bigger slaughter house in Kuching which is capable of processing 35,000 birds a day.

CCK bought an old warehouse for RM7mil recently in line with a plan to set up a new logistics centre to support the expansion of its poultry segment's in Sabah. It intends to spend RM2mil to renovate the facility. The group also owns chicken hatchery and chicken breeder houses in the state.

Tiong said CCK currently operated five retail stores in Selangor and was looking for opportunities to expand. The group's 2012 target is to open up to 10 new outlets.

“CCK's capital expenditure allocation for the financial year ending June 30, 2012 is RM30mil. We have spent about RM15mil,” he added.

Sibu-based CCK group operates an integrated supply chain of breeder, hatchery and broiler farms. Its poultry division is equipped with the latest breeding farm technologies, computer-controlled hatching chambers and an automated abattoir.

The abattoir, the only in Sarawak with a HACCP certification from the Government, is capable of processing some 4,000 birds per hour.

CCK owns and operates a chain of 40 wholesale and retail stores, trading departments as well as processing plants throughout Sarawak,Sabah and Peninsular Malaysia. The group sells about 25,000 dressed chickens a day in Sarawak.

For the financial year ended June 30, 2011, the group posted a turnover of RM376.7mil, an increase of 5.9% from RM355.7mil a year earlier. Group pre-tax profit jumped 7.2% to RM25.2mil from RM23.5mil previously.

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