KUALA LUMPUR (Aug 13): Ajinomoto (Malaysia) Bhd (AMB) is planning to invest RM355 million to build a new plant, including its corporate office, on a plot of land located in Techpark@Enstek, Bandar Baru Enstek, Seremban, in Negeri Sembilan. The company just completed the acquisition of the freehold plot today for RM86.08 million.

“The company plans to strengthen the development and production for halal-compliant products, as the recognised and established halal food and seasoning manufacturer. The new plant will enable AMB to meet this plan, which will contribute to the company’s continuing profit growth and sustainability for future business expansion,” AMB said as rationale for the new plant in a stock exchange filing.

While the new plant will initially be used for the manufacturing of AMB's current range of halal consumer and industrial products — such as its Umami seasoning AJI-NO-MOTO®, flavour seasonings, menu specific seasonings and products for industrial food producers — there will be capacity and space to make new products that the company may launch, it said.

Construction is planned to commence in October this year, to be completed by March 2022.

AMB plans to fund the costs of the new plant via a combination of internal funds and external borrowings.

An impact on the company's earnings in the plant's initial few years of operation is expected, due to depreciation of new assets and repayment of borrowings, it said.

AMB shares closed 0.11% or two sen lower at RM17.42 today, giving it a market capitalisation of RM1.06 billion.