February 10, 2004

Malaysia's Haisan To Build RM5.5 Million Prawn Processing Facility For CP Unit

Haisan and Sons Sdn Bhd (HSSB), a wholly-owned engineering arm of Haisan Resources Bhd, has secured a RM5.5mil contract to design, build and lease a prawn processing facility for Asia Aquaculture (M) Sdn Bhd (AASB), a unit of Thailand's Charoen Pokphand Foods Public Co Ltd (CP Group).  

"This cooperation enables Haisan to become part of an integrated support chain for one of Thailand's largest food processing companies, which has a wide base of operational bases within the Asian region, America and China. This venture shall enable us to be on par with other global providers of cold logistics," said its managing director Ong Chin Yet. 

Haisan, listed on the MSEB second board, is principally involved in temperature-controlled logistics and warehousing, engineering of industrial refrigeration, and ice manufacture.  

Wichit Kongkheaw, vice-president of AASB, said: "By outsourcing our engineering and facilities management in Malaysia to Haisan, AASB will be able to fully concentrate more on the processing and export of seafood products. 

Specialising in animal farming and the manufacture of processed meat and other food products, the CP Group started off as a distributor of livestock feed, and later expanded into shrimp feed manufacture and distribution, and shrimp culture and processing for export. 

As products from the plant will be exported to the United States, Japan, and the European Union (EU), the project team will incorporate good manufacturing practice standards and the EU's requirements for hazard analysis critical control point.  

Construction of the facility in Port Klang is expected to commence in March and to take six months to complete. About RM8mil in rent revenue will be generated in the initial six-year lease period.