November 22, 2018
Leong Hup to open 4th feed mill in Vietnam
Leong Hup International Bhd's business unit in Vietnam is set to open its fourth and most advanced feed mill next month, as the group aims to capture a larger share of the livestock industry, The Star Online reported.
The new plant, costing more than US$20 million, will boost the group's feed capacity by 285,000 tonnes a year in its first phase of operations. A second-phase expansion will raise the plant's total capacity to 427,000 tonnes a year.
Currently, Leong Hup's Emivest Feedmill Vietnam's total feedmill capacity stands at 1.1 million tonnes a year.
"The new plant, coupled with production improvements at existing facilities, will lift our total capacity in Vietnam to 1.5 million tonnes a year," the group's CEO for Vietnam business Lau Joo Hong said during a media tour of the company's facilities.
Lau added the group had allocated RM77.8 million in capital expenditure for 2018 and would increase it to RM80 million in 2019. Part of the spending in 2019 would include initial work for a fifth feed mill, to be located in central Vietnam.
"We are looking to expand, as Vietnam is one of our fastest-growing markets," he said.
Emivest is the main feed mill producing arm of the Leong Hup group that has operations in five ASEAN countries: Malaysia, Indonesia, Singapore, the Philippines and Vietnam. For 2017, the business in Vietnam contributed RM1.05 billion, or 18% of the group's total revenue.
All three of the group's existing feed mills are already running close to full capacity.
Three of its feed mill plants, including the one to be opened in December, are located in southern Vietnam, namely Bau Bang, Binh Duong and Tien Giang provinces, while the northern plant is located in Hai Doung.
According to local authorities, feed demand in Vietnam is projected to increase to 25 million tonnes within the next three years.
US-based Cargill opened its 12th feed mill in Vietnam in October (http://www.efeedlink.com/contents/10-24-2018/f771ed81-fa75-4154-90c9-8d97b06d47f1-a181.html), while South Korean-based CJ CheilJedang completed its sixth plant in the same month (http://www.efeedlink.com/contents/10-24-2018/b90d5738-e471-41af-b3a0-a928d50709cc-a181.html).