MALAYSIA: Sozo Global To Invest RM15 Million for Halal Processing Plant
By The Halal Journal Newsdesk (Source: Bernama) published 8 months ago
Original Article Source: Bernama
Filed Under: Trade & Investment
Sozo Global Ltd, a convenient food manufacturer, is investing RM15 million to set up a Halal processing plant in Malaysia.
Its chief executive officer Shen HengBao said the company hopes to conclude land acquisition by year-end and the plant construction will start in early 2012.
Sozo Global is still looking to identify a location that has easy access to ports and workforce, as well as the assistance of the authorities, he said.
It is likely that the plant would be located in Penang.
The ready-to-serve food specialist has signed a memorandum of understanding (MoU) with the Malaysian Halal Development Council.
Shen said the company is currently setting up its third production plant in China, specifically for Halal-certified products.
"We want to leverage on Malaysia's reputation as a Halal food hub and gain certification to penetrate the Middle East, Asean, the United States and Europe Halal markets," he added.
Sozo Global's third production facility in China is estimated to increase the company's production facility by 37 per cent.
The Shandong-based company has an extensive product range comprising frozen or vacuum cooked gourmet meat, frozen vegetable, snacks, asparagus tea and canned food.
Most of its products are exported to Japan, Korea and Europe.
"We have submitted our application for an export licence for poultry products to Singapore and an assessment is being made by the authorities. This will be our gateway to penetrate the ASEAN market," Shen said.
Meanwhile, to secure a reliable supply source, Sozo Global is also setting up modern duck farming and breeding facility in China.
The company has acquired almost RMB120 million (RMB100 = RM49) worth of land for its duck farming facility which is expected to be completed by year-end.
Sozo Global also expects to secondary list its share on the Singapore Stock Exchange during the second half of next year.
With its expansion plan, Shen said the company is confident of maintaining its profit margin at above 30 per cent next year.
Sozo Global recorded revenue of RM102.0 million for its second quarter ended June 30, 2011, an increase of RM31.51 million from the preceding quarter.
For the first half of the current financial year, it recorded a RM76.3 million profit before tax, an increase of 30 per cent compared to last year's corresponding result.