FRASER and Neave Limited (F&N), via its subsidiary Fraser and Neave Holdings Bhd (F&NHB), will invest over S$70 million (RM210 million) to boost its capacity and drive business growth in Malaysia.
F&N has a 55.5 per cent stake in F&NHB.
The investments - part of F&NHB's committed S$102 million in capital expenditure in Malaysia over two years - will include an aseptic cold-filling polyethylene terephthalate (PET) bottle line, a warehouse facility, as well as an ultra-high temperature processing (UHT) line. They will lift F&NHB's total asset value in Malaysia to RM1.9 billion.
The aseptic cold-filling PET bottle and UHT lines will enable it to meet increasing demand for its healthier range of drinks such as its ready-to-drink tea, soya and Asian soft drinks, it highlighted.
Lee Meng Tat, chief executive (non-alcoholic beverages), said: "These investments are aligned with our Vision 2020 goals of strengthening F&N's key market positions by leveraging its brand portfolio and distribution and bottling facilities. It also underscores the importance of Malaysia as one of our core markets, and reflects our confidence not only in the growth potential of our brands and our role and position in the industry, but also in the long-term economic growth in Malaysia."
Once complete, both the aseptic cold-filling PET bottle and UHT lines will boost production capacity by 6.5 million cases per year and 3.4 million cases per year respectively.