BUTTERWORTH (June 30): Rex Industry Bhd, a manufacturer and exporter of canned food, is eyeing 15 per cent growth in turnover this year, supported by the healthy expansion of its drinks division.
Group Director, Lee Hee Hong, said thatthe company would focus on the drinks division to support the growth rate and keep up the increase in sales.
He said that the group has allocated about RM2.5 million as capital expenditure in 2014 and for expansion purposes.
"Factory space expansion and an addition of new production lines are in the plans to prepare for the push towards this direction," he told reporters, after the group's annual general meeting here today.
He added that contribution from the group's overseas market via PT Rex Indonesia and Rex Food China, will boost the overall turnover.
Sales for the group recorded a positive growth of 13 per cent to RM157 million in 2013, compared to about RM139 million in the previous year.
Lee said at present, the drinks division contributed about 35 per cent to overall group turnover.
"With the additional of a new line to run 1.5 litre Tetra Pak drinks, the production capacity will be increased by another 35 per cent," he added.
He also explained that the capex for 2014 will be spent on the building of an additional warehouse on a 0.7 hectare land in Bukit Minyak near here, with construction work expected to start over the next few months.
"We expect the new warehouse for storing frozen food to be completed by the first quarter of 2015," he said.
He also foresees better prospects in the food industry, in line with an increase in the global population.