Swiss-Irish based food group Aryzta has more than doubled its manufacturing capacity in Malaysia.
It has recently exercised its option to acquire the bakery, equipment and the corresponding land of its co-manufacturer De-Luxe Food Services from Envictus International Holdings in an asset deal. The option to acquire the assets was part of the original agreement with Envictus.
The current bakery in Bangi will be closed and sold, while no relevant restructuring or impairment charges will be triggered.
Aryzta owns the Cuisine de France label and supplies the likes of McDonald’s and Subway. The transaction will expand its Asian product capability in breads, buns and pastries, including new product-filling capacity.
The company said this will greatly enhance the pace of new product development and innovation. Southeast Asia is a fast growing market for bakery which is forecast to grow by about 7-8% annually till 2026.
According to a statement by Aryzta, “The addition of this new well-invested Halal-certified bakery will enable Aryzta to meet its growing customer demands in the food service and QSR (quick service restaurants) channels in Malaysia and also expand its exports to other Asian markets. The transaction significantly improves the resilience of Aryzta’s supply chain in the region with the direct ownership of this new modern facility.”
Aryzta interim Chief Executive Urs Jordi said, “We are pleased to report on our strategic expansion in the growing Asian bakery market. This expansion is strengthening our relevant position in food service and QSR in this region.”
