September 16, 2011

China's agro-industry giant Haoyue Group is to invest RM350 million (US$13.25 million) in the halal industry in the Malaysian state of Melaka, according to Invest Melaka, the state government investment agency on Thursday (Sep 15).

The group has agreed to invest in the processing of agricultural products, beef, beverages and daily essentials needed by Muslims, as well as in the canned food industry and frozen foods, Invest Melaka general manager Ramli Mohd Ali said.

The investment will be spread over five years, with the first phase entailing a RM150 million (US$48.5 million) investment in one year, he said.

"Under the first phase, modern and hi-tech machinery will be used, creating 250 jobs," Ramli said after the investment agreement signing between Invest Melaka and Haoyue Group.

Ramli signed for Invest Melaka and Haoyue Group by chairman Cong Lian Biao.

The slaughtering of cattle and processing of the meat will be done in China, said Ramli, adding that the meat will be cut into small pieces before they are brought to Melaka, with the beef to be sold in the domestic market and Asean countries.

Haoyue Group also intends to establish a halal food processing hub on a 52.4ha site at the Melaka Halal Centre in Serkam, said Ramli.

The Chinese company is the main beef supplier for fast-food giant McDonald's and its beef-derived products are exported to 21 countries.

Invest Melaka has netted the highest investment returns in its history, totalling RM3.71 billion (US$1.2 billion) in the January-June period this year, according to Ramli.