KUALA LUMPUR (Jan 21): Beverage manufacturer Fraser & Neave Holdings Bhd (F&N) has budgeted at least RM300 million for capital expenditure (capex) over the next two years to expand production capacity.

F&N's chief executive officer Lim Yew Hoe said capex would finance investments, which include the expansion of group's dairy and packaging products' output.

"The investment is part of our ongoing commitment as a market leader in Malaysia and Thailand, with 133 years of heritage, to grow the business and brands, while deepening and widening its reach across all markets," Lim said at a media briefing after F&N's annual general meeting here today.

He said two planned investments would come on stream within the next six months. In Thailand, Lim said F&N's capex would finance its packaging line for evaporated milk at its 300 million Baht (RM36.15 million) Rojana plant.

He said production would start in March this year.

In Malaysia, Lim said RM45 million would be spent on a new polyethylene terephthalate (PET) packaging manufacturing line at F&N's Shah Alam facility to meet growing demand for ready-to-drink beverages in the country.

The PET line, which is set to be operational by June this year, will boost its output by 40%, according to him.
 
At Bursa Malaysia today, F&N shares has not been traded so far. At the stock's latest closing price of RM18.38, the company had a market value of RM6.74 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)