KFC to invest millions in new poultry processing plant

14-06-2007 | |

KFC Holdings will be investing RM25 million (US$7.5 million) in a third poultry processing plant in Johor, Malaysia.

The third poultry plant will ensure sufficient supply for restaurants, as well as provide an alternative contingency supply when necessary.
Chairman Tan Sri Muhammad Ali Hashim said since the first bird flu scare in the local poultry market last February, the group had started looking at geographically diversifying its supply network, adding that a greater chicken supply is needed for daily operations.
The new factory is expected to begin operation in mid-2008, and will source poultry farmed in and around Johor. This investment, financed by internally-generated funds, will help raise processing capacity by 50% from some 100,000 birds daily from two existing plants in Port Klang and Bukit Mertajam.
Ten more outlets are planned for the 2007, totalling 22 new outlets this year, the same number of stores it opened in 2006. The company is also looking at expanding its hypermarket and drive-thru’ network.