MFM to up Production and Improve Efficiency
News & Events 2008
Posted Date : 10 Jun 08
KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) plans to increase production and improve efficiency to reap economies of scale in view of rising commodity, sea freight and fuel prices.
Managing director Teh Wee Chye said the fuel price increase had affected the transport of raw materials as well as finished goods by sea to customers.
"The impact is unfortunate but we will try to minimise it by being more efficient and competitive. One way is to use bigger ships or trucks to be cost-effective," he said after the company AGM yesterday.
Teh said measures needed to be taken to minimise the impact of oil price increase.
"The initiatives towards this end should be a collaborative effort between the MFM and the Government," he said.
On whether MFM planned to increase prices of its products, Teh said it would not happen immediately.
"There is a lot of uncertainty surrounding the production of flour, such as freight, price and weather. While wheat prices have eased, they are still very much dependent on the weather," he said.
On MFM's expansion plans, Teh said the company aimed to make its business more efficient and gain better economies of scale by managing unit cost.
Meanwhile, chairman Tan Sri Arshad Ayub said MFM expected its poultry integration business to turn around by year-end and report profit in 2009.
The segment recorded losses of RM7.6mil for the first quarter ended March 31 on a lower revenue of RM39.3mil, compared with RM44.8mil for the previous corresponding period.
For the first quarter ended March 31, MFM recorded a pre-tax profit of RM36mil on revenue of RM291mil. - Bernama
Source : The Star Newspaper, Starbiz