KFC Holdings (M) Bhd (KFCH) is investing RM25mil in a third poultry processing plant in Johor, which will ensure sufficient supply for its restaurants and provide an alternative contingency supply, chairman Tan Sri Muhammad Ali Hashim said.
He said that since the first bird flu scare in the local market last February, followed by the Singapore ban on chicken imports from Selangor, the group has started to look for geographic diversification of its supply network.
Ali said the group also needed a bigger supply of chicken for its daily operations.
“We are killing two birds with one stone,” he told reporters after the company’s AGM yesterday.
The new factory – to start operating by mid next year – will source for chickens farmed around Johor. It will help raise the group’s processing capacity by 50% from some 100,000 birds daily at two existing facilities in Port Klang and Bukit Mertajam. “The proposed plant will be financed by internally-generated funds,” Ali said.
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