MFM chairman Oh Chong Peng said the new milling line will have the latest, more efficient, cost-effective technology.
“It would also raise the existing 1,800 million tonnes daily capacity by another 600 million tonnes.
“The balance of RM60 million will be used to construct and install flour silos and flour blending facilities in Mekong Flour Mills Ltd in southern Vietnam,” he said in MFM’s 2023 annual report.
Oh said MFM had a capital expenditure (capex) of RM34.8 million in the financial year of 2023 (FY 2023).
The bulk of which was invested in 14 additional wheat silos in Mekong Flour Mills Ltd to double its capacity from 50,000 tonnes to 100,000 tonnes and to enhance its warehouse and workshop.
“In northern Vietnam, Vimaflour Ltd also completed its installation of 18 additional wheat silos with an extra storage capacity of 65,000 tonnes in FY2023,” Oh said.
As for its poultry integration segment, he said most of the capex was invested to raise the capacity of both the wastewater treatment and rendering facilities at its primary processing plant.
He said for this segment, it intends to invest about RM218 million to upgrade and expand breeder farms and automate the primary processing plant.
The poultry integration segment saw lower sales in FY2023 due to a brief change in consumer behaviour towards other quick service restaurant (QSR) chains due to a boycott and not so much as a fundamental shift in consumer preference for non-poultry meat with western QSR brands favoured by Malaysians.
The situation allowed MFM to develop a new sub-segment in the food services channel.
“Therefore, while the group continues to strategise for new markets, it will continue to support key customers affected by the boycott,” he said.
Furthermore, MFM said it aims to take the synergistic partnership with Tyson International Holding Company to the next level.
“Firstly, we hope to work towards setting up technology-enabled farms for both parent stocks and broilers to help ensure a sufficient supply of broilers to our processing plant at the Kampung Acheh Industrial Estate in Sitiawan, Perak.
“Secondly, we aim to leverage their competitive edge and technical expertise to improve our operations, venture into new export markets, and undertake product development initiatives,” Oh said.
Meanwhile, for the flour and grain trading segment, MFM said it will continue to build relationships with suppliers to secure an uninterrupted supply of raw materials to production facilities in Malaysia, Vietnam, and Indonesia.