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New Straits Times
4 days ago
- Business
- New Straits Times
Malayan Flour Mills boosts milling capacity by 33pct with new production line
KUALA LUMPUR: Malayan Flour Mills Bhd has commissioned a new flour milling line at its Lumut facility in Perak, boosting its domestic production capacity by 33 per cent to 2,400 tonnes per day. The RM31.5 million investment is aimed at meeting rising consumer demand for flour-based products and strengthening food security in Malaysia, the company said in a statement today. "We saw a rising and sustainable demand for flour in Malaysia in recent years as our growing population looks to flour as a carbohydrate alternative," said executive deputy chairman and managing director Teh Wee Chye. He said the expansion would not only increase output but also improve operational efficiency and cost-effectiveness. "The launch of our new milling line in Lumut is timely to tap into these growing opportunities," he added. The new line features automated systems designed to reduce energy use and waste. It brings the group's total domestic capacity to 2,400 tonnes per day across its Lumut and Pasir Gudang plants. The group's flour and grain trading segment recorded strong performance in the 2024 financial year, with adjusted profit after tax rising 83 per cent to RM126.1 million on stable revenue of RM3.1 billion. Sales tonnage grew by 23.5 per cent. "With the expansion, we are well-positioned to explore further growth opportunities, including new product development and market penetration," Teh said.
Malaysian Reserve
19-05-2025
- Business
- Malaysian Reserve
Malayan Flour Mills allocates RM215m capex for FY25
MALAYAN Flour Mills Bhd (MFM) has earmarked RM215 million in capital expenditure (capex) for the financial year ending Dec 31, 2025 (FY2025), with investments focused on expanding its flour and poultry segments in Malaysia and Vietnam. At its AGM today, the group said RM55 million will be allocated to its flour and grain trading (FGT) division to expand capacity and improve efficiency. This includes RM20 million for automation upgrades at its Lumut and Pasir Gudang mills, aimed at reducing manual labour and enhancing product consistency. In Vietnam, MFM is investing RM34 million – RM21 million to expand capacity and upgrade operations in the north, and RM13 million for new flour silos and blending facilities in the south. The remaining RM160 million will be directed to the group's Poultry Integration segment, shared between MFM and its joint venture partner. Of this, RM100 million will go towards new farming infrastructure including parent farms and hatcheries, while RM60 million is earmarked for productivity improvements at existing farms. 'These strategic investments are critical to strengthening our production capacity and operational efficiency, enabling us to meet the growing demand in both Malaysia and Vietnam,' said executive deputy chairman and MD Teh Wee Chye. For FY2024, MFM posted a net profit of RM58.1 million, rebounding from a RM6.7 million net loss a year earlier, thanks to strong FGT performance. The group noted that net profit would have reached RM100.2 million if not for a RM42.1 million impairment on its Indonesian flour operation, which has remained loss-making for three consecutive years. Teh said the group remains optimistic about the long-term prospects of its flour and poultry businesses, and that the capex will be funded via a mix of internal funds and borrowings. 'These initiatives reflect our commitment to solidifying our position as a leading staple food supplier while driving sustainable growth,' he added. –TMR
The Sun
19-05-2025
- Business
- The Sun
Malayan Flour Mills earmarks RM215 million for capital expenditure in FY25
KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) has earmarked RM215 million for capital expenditure (capex) in the financial year ending Dec 31, 2025 (FY25) to expand its poultry integration and flour trading operations in Malaysia and Vietnam. The capex will be financed through a combination of internally generated funds and borrowings. Of the total, RM160 million will be allocated to the group's poultry integration (PI) segment. This includes RM100 million for the expansion and upgrading of farming infrastructure – such as construction of parent farms and hatcheries – in collaboration with its joint venture partner. The remaining RM60 million will be used to upgrade existing farms to enhance productivity and supply chain efficiency. Executive deputy chairman and managing director Teh Wee Chye said MFM is expanding its poultry business with government support because Malaysia still relies heavily on imported chicken and does not produce enough domestically to meet demand. 'For poultry integration, we are also working closely with the government. We see further upside in growth because poultry remains the most affordable source of protein,' he said at a press conference after its AGM today. Teh said MFM is partnering with Tyson Foods to modernise its farming operations, as around 60–70% of chicken coops in Malaysia still operate under open-house systems, which are increasingly vulnerable to climate change. 'Open houses tend to experience higher mortality rates, whereas closed, climate-controlled houses will definitely perform better.' MFM has completed the design and cost planning for the climate-controlled houses, which feature temperature control systems that are more efficient and better suited to extreme weather conditions. 'With the climate-controlled houses we have finalised in terms of design and costing, we believe this will result in better efficiency, particularly under harsher climate conditions,' Teh said. He highlighted the company's logistics advantage through having its own jetty, which enables bulk importation of poultry feed. 'This allows us to add value to the business, especially since we have our own jetty, enabling us to bring in combo shipments of corn and soya meal, and helping to reduce our cash conversion cycle,' he said. MFM's investment also extends to its flour and grain trading segment, which will receive RM55 million to expand capacity and enhance operational efficiency in key markets. This includes RM20 million for automation upgrades at MFM's flour mills in Lumut and Pasir Gudang to reduce manual labour, boost efficiency and ensure consistent product quality. In Vietnam, MFM plans to scale up operations with a total investment of RM34 million – comprising RM21 million for capacity expansion and operational upgrades at its northern Vietnam plant, and RM13 million for the ongoing construction of flour silos and blending facilities in the southern region. The RM55 million investment is jointly funded by MFM and its partners: RM20.4 million from MFM, RM20.9 million from Vima, RM13.1 million from Mekong and RM600,000 from DSM. Teh said these investments are critical to strengthening production capacity and operational efficiency to enable them to meet the growing demand for flour and flour-related products in both Malaysia and Vietnam. 'We are encouraged by the strong performance in our flour business in these key markets, and we believe that this growth trajectory is sustainable. The investments in automation and capacity expansion are timely, positioning us to capture future demand. 'On the flour mills, as you can see, our operations in Malaysia and Vietnam are performing very positively. As we grow capacity to meet market demand, we also aim to be cost-efficient. I believe we are on the right track.' Teh added that MFM's flour plant in northern Vietnam is operating near full capacity which prompted the board to approve a new 500-tonne-per-day mill to support future demand. 'Since it's maxed out, and the Vietnam economy – pending everything moves well – is still projecting an 8% growth rate, we see prospects for these two investments.' MFM's Vietnam flour operations posted over RM2 billion in revenue in 2024, contributing RM250 million in profit. 'We are encouraged by the strong performance in our flour business in these key markets, and we believe that this growth trajectory is sustainable. The investments in automation and capacity expansion are timely, positioning us to capture future demand,' Teh said. He reaffirmed MFM's long-term optimism for both its flour and poultry businesses, citing continued investments in infrastructure and technology as key to strengthening the group's competitive edge. 'Our commitment to automation, capacity expansion, and infrastructure upgrades reflects our goal of becoming a leading staple foods supplier in the countries where we operate, while driving sustainable growth for the group,' he added.
The Star
19-05-2025
- Business
- The Star
Malayan Flour Mills allocates RM215mil capex for FY25
KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) has allocated RM215 million in capital expenditure (capex) for the financial year ending Dec 31, 2025 (FY2025). Of the total, the company will channel RM160 million to its poultry integration segment, with RM100 million earmarked for expanding and upgrading farming infrastructure, including the construction of parent farms and hatcheries, said executive deputy chairman and managing director Teh Wee Chye. The remaining RM60 million will go towards improvement works at existing farms to boost productivity and supply chain efficiency, he said. The RM160 million investment will be jointly funded by MFM and its partner in a 51:49 ratio. In May 2021, MFM formed a joint venture with meat processor and marketer Tyson Foods for its poultry segment. The partnership leverages Tyson's global network, proprietary technology and market reputation to increase sales, access export markets and improve operational efficiency. Meanwhile, the flour and grain trading segment will invest RM55 million to expand capacity and improve efficiency across key markets in Malaysia and Vietnam. "This includes RM20 million for automation at our flour mills in Lumut and Pasir Gudang to reduce manual labour, enhance efficiency and ensure consistent product quality,' Teh said at a press conference after the group's 65th annual general meeting today. In Vietnam, Teh said the company will invest RM34 million to scale operations. Of this, RM21 million will go towards expanding capacity and upgrading its northern Vietnam plant, while RM13 million is allocated for building flour silos and blending facilities in the southern region. "These strategies enable us to meet the growing demand for flour and flour-related products in both Malaysia and Vietnam,' he added. Commenting on the price-fixing investigation involving its joint venture company, Dindings Poultry Development Centre Sdn Bhd, MFM chief financial officer Alan Yau Tee Peng said the hearing has started but remains ongoing. "The next session is scheduled for end-June. We will go through the process and await the tribunal's decision,' he said. Yau said the matter is still at an early stage, adding: "We believe we have not committed any of the alleged violations made by the Malaysia Competition Commission (MyCC), and we stand by our position.' "Even in the worst-case scenario, we strongly believe the RM70 million fine is erroneous,' he added. MFM has completed a state-of-the-art poultry processing plant with a slaughtering capacity of 280,000 birds per day, expandable to 340,000 birds. Its processed poultry products are sold under the Ayam Dindings, Ayam Fiesta, Jimat Fiesta and DeliHous brands. - Bernama
Barnama
19-05-2025
- Business
- Barnama
Malayan Flour Mills Allocates RM215 Mln CAPEX For FY2025
REGION - CENTRAL > NEWS Chairman of Malayan Flour Mills Berhad, Datuk Oh Chong Peng (centre) poses for a photo during the Annual General Meeting press conference of Malayan Flour Mills Berhad today. Also present were Executive Deputy Chairman cum Managing Director, Teh Wee Chye, and Chief Financial Officer of Malayan Flour Mills Berhad, Alan Tee Peng. KUALA LUMPUR, May 19 (Bernama) -- Malayan Flour Mills Bhd (MFM) has allocated RM215 million in capital expenditure (capex) for the financial year ending Dec 31, 2025 (FY2025). Of the total, the company will channel RM160 million to its poultry integration segment, with RM100 million earmarked for expanding and upgrading farming infrastructure, including the construction of parent farms and hatcheries, said executive deputy chairman and managing director Teh Wee Chye. The remaining RM60 million will go towards improvement works at existing farms to boost productivity and supply chain efficiency, he said. bootstrap slideshow The RM160 million investment will be jointly funded by MFM and its partner in a 51:49 ratio. In May 2021, MFM formed a joint venture with meat processor and marketer Tyson Foods for its poultry segment. The partnership leverages Tyson's global network, proprietary technology and market reputation to increase sales, access export markets and improve operational efficiency. Meanwhile, the flour and grain trading segment will invest RM55 million to expand capacity and improve efficiency across key markets in Malaysia and Vietnam. 'This includes RM20 million for automation at our flour mills in Lumut and Pasir Gudang to reduce manual labour, enhance efficiency and ensure consistent product quality,' Teh said at a press conference after the group's 65th annual general meeting today. In Vietnam, Teh said the company will invest RM34 million to scale operations. Of this, RM21 million will go towards expanding capacity and upgrading its northern Vietnam plant, while RM13 million is allocated for building flour silos and blending facilities in the southern region. 'These strategies enable us to meet the growing demand for flour and flour-related products in both Malaysia and Vietnam,' he added.
