Lay Hong, Japan's NH Foods To Set Up JV Firm

KUALA LUMPUR, March 30 (Bernama) -- Malaysia's poultry-based company Lay Hong Bhd and Japan's NH Foods Ltd on Wednesday signed a joint venture agreement to establish a joint venture company for business expansion overseas to markets such as Singapore, Japan and the Middle East. Speaking to reporters after the signing ceremony between Lay Hong Bhd and NH Foods, Lay Hong Bhd Executive Director Yap Chor How said the JV would enable the company to leverage on NH Foods' research and development and manufacturing skills, enabling it to expand its markets overseas to countries with huge potential. He said the new JV firm, NHF Manufacturing (M) Sdn Bhd, would ensure long-term growth for both entities. "Under the JV agreement, Lay Hong would supply all raw materials required in the production of further processed food products of the JV company. "We will also look into existing Lay Hong products to go into markets in NH Foods' network to explore the possibility of exporting the existing products overseas," said Yap. NHF is principally involved in the production of mainly fresh meat, processed food and dairy products. Currently, NH Foods has a presence in China, Taiwan, Thailand, Vietnam and Singapore. NHF Manufacturing will see NH Foods holding a 51 per cent stake and the remaining 49 per cent equity by Lay Hong, with an initial share capital of US$7.62 million (RM30 million) that could expand later depending on market conditions. Meanwhile, Lay Hong Bhd Group Executive Chairman Yap Hoong Chai said both the poultry and food industries are expected to grow steadily despite the economic uncertainties. "However, with more opportunities in the food sector, Lay Hong will be able to expand rapidly and achieve greater heights especially with a partner like NH Foods," he added. Also present at the event was Minister in the Malaysian Prime Minister's Department Dr Wee Ka Siong. --BERNAMA