KUALA LUMPUR (June 9): Frozen seafood producer PT Resources Holdings Bhd (KL:PTRB) said it has set up a coconut processing facility for RM17 million in Fujian province of China.

The move broadens its food processing capabilities to include coconut-based products and is aimed at tapping into the growing demand for coconut-based products in China, PT Resources said in a statement on Monday.

The facility’s trial production is currently underway, and commercial operations are expected to commence by mid-June 2025, the company said.

“In the initial phase, the group will focus on supplying frozen and dried coconut products to business-to-business customers such as food and beverage manufacturers in Fujian province and nearby regions,” it said.

PT Resources said Fujian is strategically positioned as one of China’s key import and processing hubs for mature coconuts, serving a wide network of food manufacturers within a 700km radius of its facility located within the China-Indonesia Food Industrial Park in Fuqing City.

The RM17 million investment for the facility is funded entirely via internally generated funds, PT Resources noted.

PT Resources is optimistic on the growing demand for coconut-based products in China, supported by the country’s large population, rising interest in plant-based diets, and increased demand for dairy alternatives, said managing director Heng Chang Hooi.

“On the supply side, PT Resources is also in the process of securing consistent supplies of mature coconuts from Indonesia — one of the world’s leading coconut producers. These arrangements will ensure a steady supply of coconuts to meet the anticipated demand,” he added.

At the time of writing, shares of PT Resources were unchanged at 33 sen, valuing the company at RM176.56 million.