Malayan Flour Mills Invests RM100 Million in Manufacturing Upgrades

Malayan Flour Mills invests RM100M to upgrade manufacturing, expand production capacity, and strengthen poultry integration, positioning the company for long-term growth in the Southeast Asian food industry.

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Israel Ojoko
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Malayan Flour Mills Invests RM100 Million in Manufacturing Upgrades

Malayan Flour Mills Invests RM100 Million in Manufacturing Upgrades

Malayan Flour Mills Bhd (MFM) has announced a total investment of RM100 million for the financial year 2024 to upgrade its manufacturing capabilities and expand production capacity. The company will allocate RM32 million to install a new milling line at its Lumut facility, increasing the existing daily capacity of 1,800 million tonnes by an additional 600 million tonnes.

The remaining RM60 million will be used to construct and install flour silos and flour blending facilities at Mekong Flour Mills Ltd in southern Vietnam. This investment follows MFM's capital expenditure of RM34.8 million in FY 2023, which was primarily invested in additional wheat silos in Vietnam to double storage capacities.

MFM also plans to invest approximately RM218 million in its poultry integration segment to upgrade and expand breeder farms and automate the primary processing plant. The company aims to strengthen its partnership with Tyson International Holding Company by setting up technology-enabled farms, improving operations, venturing into new export markets, and undertaking product development initiatives.

Why this matters: MFM's significant investments in manufacturing upgrades and capacity expansion demonstrate the company's commitment to meeting the growing demand for flour and poultry products in the region. These strategic moves are expected to enhance MFM's competitiveness and position the company for long-term growth in the food industry.

In a statement, MFM emphasized its focus on building relationships with suppliers to secure an uninterrupted supply of raw materials for its production facilities in Malaysia, Vietnam, and Indonesia. The company recognizes the importance of a stable supply chain in ensuring smooth operations and meeting customer demands.

MFM's investments in manufacturing upgrades and capacity expansion are expected to boost the company's production capabilities and enable it to cater to the growing market for flour and poultry products in Southeast Asia. By leveraging technology and strengthening partnerships, MFM is well-positioned to capitalize on the opportunities in the food industry and drive long-term growth.

Key Takeaways

  • MFM to invest RM100M in FY2024 to upgrade manufacturing, expand production capacity.
  • RM32M to install new milling line in Lumut, increasing daily capacity by 600MT.
  • RM60M to construct flour silos, blending facilities at Mekong Flour Mills in Vietnam.
  • RM218M investment in poultry integration segment to upgrade, expand breeder farms.
  • Investments aim to enhance competitiveness, meet growing demand for flour, poultry.