QL Resources Berhad (428915-X)
24
Group Managing Director’s Report
(Cont’d.)
MPM Key Developments
The activities at the MPM division are branching into two
clear groups; upstream and downstream activities. As the
operations at the MPM division continue to pick up steam
with the continuous investments into capacity enlargement
and productivity improvement, this division will see a
divergence into MPM Upstream and Food divisions.
Supporting these developments are multiple projects which
are at various stages of planning and completion.
Phase 1 of the new plant specialising in frozen surimi-based
products in Kulai has been completed and operations are
being migrated from its current factory in Johor Bahru.
Development are still taking place at the Kulai plant and its
full operations is slated to take two years.
Ramping up our MPM downstream activities, a new RM40-
million chilled surimi-based products plant is being built in
Hutan Melintang. Upon commissioning in two years’ time,
this new state-of-the-art facility will more than double the
current annual capacity of 12,000 metric tonnes to 25,000
metric tonnes. At the same time, plans are also in place to
commence construction of a new third frozen products
factory at an estimated capital expenditure budget of RM40
million.
Further shoring up our MPM activities is a new frozen
marine products processing plant which is being constructed
in Tuaran, Sabah with a capital allocation of RM25 million.
Over in Surabaya, the completion of the land reclamation
works next to our existing factory has enabled us to progress
to the next stage i.e. the plan to start manufacturing surimi-
based products in Indonesia which we aspire to see fruition
in three years’ time. In the meantime, there are low hanging
fruits to harvest and to do so, QL is planning to set up a
distribution centre in Indonesia to provide the immediate
channel to market our surimi-based products from the plants
in Hutan Melintang and Johor Bahru.
For the upstream activities, QL is growing our current 21 fish
fleet in Endau to 24 by the next financial year to bolster our
deep-sea fishing capabilities.
Meanwhile over in Sabah, our investment into ensuring
resource sustainability and over the long term, securing our
supply chain for marine products is breeding well despite
some initial challenges. The prawn aquaculture activity in
Kudat underwent a bumpy learning curve where we found
the balance and formula that enhanced productivity. This is
a significant achievement in our strategy of building
sustainability in an industry that depends on the natural
resource of the sea.
The MPM division with its unique business activities that
span both upstream and downstream is on solid footing, with
projects progressing as expected.
