F&N rolls out $70m investment to boost capacity in Malaysia

It’s to build a new PET bottle, UHT line.

Fraser and Neave, Limited (F&N) is funneling over $70m (RM210m) in capacity expansion to ramp up business growth in Malaysia.

According to the company’s media release, the investment will be made through F&N’s 55.5% held subsidiary Fraser & Neave Holdings Bhd (F&NHB).

The aseptic cold-filling PET bottle line will be housed within the new integrated four-storey warehouse. It is expected to reduce the group’s carbon footprint and packaging costs. Including the warehouse, which will be built on a 2.2 ha site within F&N’s existing soft drinks plant in Shah Alam, the total investment is expected to reach about $61m (RM180m).

Meanwhile, the $10m (RM30m) UHT line will be housed in F&N’s plant in Sarawak.

F&N asserts that once complete, both the aseptic cold-filling PET bottle and UHT lines will boost production capacity by 6.5m cases per year and 3.4m cases per year respectively.

The projects are part of F&NHB’s total $102 million (RM300 million) capex committed over two years in Malaysia, one of F&N’s core markets, to maintain the group’s competitiveness in the market, as well as extend its product offerings and packaging formats.

“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,” comments Lee Meng Tat, CEO of Non-Alcoholic Beverages.