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SINGAPORE
- 17 May 2000 - Mainboard-listed Food Empire
Holdings, announced today it intends to acquire
a 35% stake, consisting RM1.75 million (approximately
S$785,000), in Ernsts Food Ingredients Sdn Bhd (Ernsts)
to produce non-dairy creamer.
The
remaining 65% stake in this joint venture company will
be held by Penang-based Oriental Concept Sdn Bhd whose
group of companies are in the business of processing
grains, such as cereal flakes and oats, as well as spray-dried
products.
Ernsts
is planning to build a brand-new production facility,
costing RM8.62 million, on 151,714 square feet of land
in Butterworth, West Malaysia. The facility, which has
a total built-up area of 40,000 square feet, is expected
to produce 3,900 metric tonnes of spray-dried, non-dairy
creamer annually mainly for the Malaysian market when
it is operational by February 2001. The Company plans
to expand its distribution network regionally in the
near future.
The
total project, costing RM13.92 million, would be financed
by having a paid up capital of RM5 million, shareholders'
loan amounting to RM5.3 million, and bank borrowings
for the remaining RM3.62 million. Ernsts hopes to generate
an annual turnover of RM11.4 million and and RM14.82
million in 2001 and 2002 respectively.
Non-dairy
creamer is an essential ingredient in the production
of 3-in-1 instant coffee, cereals, and other products.
This investment is, therefore, a natural extension of
Food Empire's core food and beverage business.
Said
Mr Tan Wang Cheow, Managing Director of Food Empire
Holdings, "Investing in such a venture is in line
with our strategy of vertically integrating businesses
that are related to our core food and beverage activities."
In addition,
the plant will eventually produce ice-cream powder,
bakery fat powder, soup and sauce creamer, skim milk
powder filled with vegetable fat, and foaming creamer
(for instant cappuccino products).
Food
Empire Holdings Limited, listed on the mainboard of
the Singapore Exchange, is a leading food and beverage
company that manufactures and markets more than 40 instant
beverage products under the brands Klassno, Temasek
Royal, MacCoffee, Express and Fesbrew. Its products
are mainly distributed to more than 30 countries in
emerging markets such as Russia, Eastern Europe, Central
Asia and Indochina.
| Total
land area |
151,714
square feet |
| Location |
Butterworth,
West Malaysia |
| Built-up
area |
40,000
square feet |
| Cost |
RM
8.62 million |
| Features: |
The factory
is divided into the following sections:
- Liquid Preparation
- Powder Drying
incorporating a state-of-the-art Multi-Stage
spray dryer. This dryer can convert most food
ingredients to powder form, including those
that are not easily processes by conventional
spray dryers.
- Packaging
- Quality
Control Laboratory (for testing and product
development)
To ensure hygiene
is kept to international standards, the plant
is equipped with a fully-automated Clean-In-Place
(CIP) system. This system automatically cleans
all the production equipment by circulating washing
solution, thus saving up to 640 man-hours a month.
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| Production
Process: |
- Various
food components of the non-dairy creamer are
mixed together and processed.
- Creamer
emulsion is sent through a spray dryer, where
the liquid is removed.
- End product
has excellent solubility and dispersibility
as required by its customers.
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