SINGAPORE (May 5): Fraser and Neave (F&N) is injecting over $70 million in capacity expansion to fuel business growth in Malaysia through Fraser & Neave Holdings Bhd (F&NHB), its 55.5% held subsidiary.

The capital expenditure projects, which include a state-of-the-art aseptic cold-filling polyethylene terephthalate (PET) bottle line, a warehouse facility, as well as an ultra-high temperature processing (UHT) line, will boost F&NHB’s total asset value in Malaysia to RM1.9 billion ($643 million).

The projects are part of F&NHB’s total $102 million capital expenditure committed over two years in Malaysia -- one of the group’s core markets -- to extend its product offerings and packaging formats.

The aseptic cold-filling PET bottle line, to be housed within the new integrated four-storey warehouse, will reduce PET resin packaging material by 40%. Including the integrated four-storey warehouse, which will be built on a 2.2-acre site within its existing soft drinks plant in Shah Alam, Selangor, the total investment is expected to be around $61 million.

The new UHT line, which costs $10 million, will be housed at the group’s existing soft drinks plant in Kuching, Sarawak. Once complete, both the aseptic cold-filling PET bottle and UHT lines will boost production capacity by 6.5 million cases per year and 3.4 million cases per year, respectively.

F&N closed 1.26% lower at $1.96 on Wednesday.