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New farm for Chew's Group to require S$77m in capex
THE capital expenditure (capex) required for egg producer Chew's Group's new farm will come up to about S$77 million.
The funding will come from partially from the amount Chew's Group will receive from the government for the sale of its old farm, and also borrowings.
Chew's Group revealed these on Friday, three weeks after announcing that it is moving to a site 6.5km away.
It sold its Murai farm and assets to the government for S$38.7 million, and purchased the new site from the government for S$3.98 million. The new site has a lease of 30 years.
The new farm will boast an integrated farming concept built with new technologies, and also allow Chew's to double production from 500,000 eggs a day to one million eggs a day.
To ensure continuity of business operations, Chew's Agriculture will lease the current Murai facilities for the sole purpose of poultry farming, for a period of three years, from June 1 this year to May 31, 2019, said the firm.
Chew's Group said it pans to complete the relocation of its business operations by then.