Malayan Flour to pump in US$30 million in existing JV with Tyson

by asiafoodbeverages
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Malayan Flour Mills Bhd (MFM) plans to invest at least RM135 million (US$30 million) this year to expand the current production capacity of the poultry processing facilities in its existing joint venture (JV) with Tyson Foods. Dindings Tyson Sdn Bhd (DTSB) is a JV in the integrated poultry business in which MFM holds 51% stake.

Managing Director of MFM Teh Wee Chye said, “MFM is confident in the prospects of the integrated poultry segment. Importantly, the segment maintained its momentum of volume optimisation in line with the rising demand for our processed meat from our customers in the quick-service restaurants and food manufacturing sectors.”

Wee Chye further elaborated that while its regional flour milling operations were affected negatively by a confluence of factors, the poultry integration segment on the other hand was reporting strong profit. MFM will focus on maintaining cost-effectiveness in its flour milling operations through improved flour extraction and blending techniques.

The US$30 million investment (capex) will be used in the upgrading of the JV’s primary poultry processing plant in Sitiawan, Malaysia. This will lead to an increase in slaughtering capacity by more than 20% to 340,000 birds per day.

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