KUALA LUMPUR: Fraser & Neave (F&N) Holdings Bhd, a part of F&N Ltd, will construct a manufacturing plant in Cambodia at an approximate cost of US$37.5 million (RM179.5 million) in order to grow its diary product business.
The total cost includes the amount to lease 32,200 square metres of land in the Suvannaphum Special Economic Zone, the construction of the building, and the purchase of machinery.
F&N has agreed to lease the land from Suvannaphum Investment Co., Ltd for
US$3.864 million,.
The land is intended for industrial usage, however, it is now unoccupied.
Based on the size of the land, the consideration works out to US$120 per square meter.
According to F&N, in a filing with Bursa Malaysia on Thursday, the 50-year lease will start on February 1 and end on January 31, 2074.
The company signed a lease for the land through F&N Foods (Cambodia) Co., Ltd., a wholly-owned subsidiary, on February 15.
It said the manufacturing facility will produce sweetened beverage creamer in cans and pouches.
According to F&N, the manufacturing facility is anticipated to open for business in the first quarter of 2026.
F&N's first quarter net profit ending Dec 31, 2023, was RM170.74 million, down 14.11 per cent from RM198.8 million in the same period last year due to one-time non-operating factors.
However, quarterly revenue increased 9.39 per cent to RM1.33 billion from RM1.22 billion, mostly due to higher exports helped by a stronger baht and the ongoing momentum for food and beverages in Malaysia and Thailand.