Leong Hup plans new plant in Negri halal hub

Leong Hup Holdings Bhd (LHH) plans this year to set up a new chicken processing plant in the halal hub in Pedas, Negri Sembilan. 

Executive director Tan Sri Francis Lau Tuang Nguang said the facility would further strengthen the company’s position in downstream activities. 

He said the plant would produce processed chicken meat foodstuff such as frankfurters, nuggets and chicken meatballs for the domestic market. 

“Demand for processed chicken foodstuff is on the rise as consumers find them quite convenient,” Lau told StarBiz after the company EGM recently. 

He said the company was always on the lookout to expand its processed chicken foodstuff by regularly introducing new products for consumers.  

At the EGM, shareholders approved LHH's proposed acquisition of 45 shop office and apartment units within a building known as Wisma Westcourt in Jalan Kelang Lama, Kuala Lumpur, from Leong Hup Management Sdn Bhd (LHM) for RM18mil cash. 

They also approved the proposed disposal by wholly-owned subsidiary Leong Hup Poultry Farm Sdn Bhd (LHPF) of two pieces of leasehold land in Gopeng, Perak to Sri Medan Duck Farm Sdn Bhd for RM6mil cash. 

The property purchase consideration will be payable to LHM by way of offsetting the outstanding debt owed by LHM to LHH. LHPF will use the sale proceeds as additional working capital. 

“The local poultry industry is still profitable but the main challenge is the rising of raw materials due to high oil price in the world market,” said Lau. 

He said people still ate a lot of chicken meat and local consumption of the meat on average 5% yearly. Malaysians and Singaporeans consumed about 35kg and 37kg each respectively as it was the cheapest source of meat protein. 

Lau said the company also planned to set up more Ayam A1 retail outlets selling fresh and roasted chickens from the existing seven outlets.