F&N Strengthens Presence in Sabah with RM18 Million PET Production Line
Posted on 30 April 2012
Kota Kinabalu – F&N Beverages Marketing Sdn Bhd has invested RM18 million to install a polyethylene terephthalate (PET) production line and supporting infrastructure at its Kota KInabalu facility to meet the growing demand for PET packaged sparkling beverages in Sabah.

The line provides F&N production scalability in anticipation of future growth, without the need for plant expansion. It also reduces logistics costs of transporting the products from F&N’s main Shah Alam plant or from Kuching while facilitating speedier delivery to market.

“Sabah continues to be a significant market for F&N and our investment in this line will enable us to cater to the potential growth for PET sparkling beverages in Sabah, one of our significant markets in Malaysia. We can scale up production seamlessly to thrice the current capacity with no additional investment required,” said Khalid Alvi, Managing Director of F&N Beverages Marketing Sdn Bhd.

“We can drive consumption of our PET range of soft drinks in Sabah with minimal logistic costs while ensuring our consumers in Sabah can get their share of F&N products when they want it,” Alvi added

F&N Beverages is the soft drinks division of Fraser & Neave Holdings Bhd. The Sabah market contributed 12.3 per cent of total soft drinks revenue to the F&N Group in its last financial year ended September 2011.

The line produces F&N sparkling beverages in 500ml and 1.5L PET packaging for 100PLUS and F&N Fun Flavors such as F&N Orange, F&N Sarsi and F&N Clearly Citrus.

F&N is the number one player in Sabah within the PET sparkling category comprising carbonated soft drinks (CSD) and isotonic drinks, accounting for 40.7 per cent of the market.

The Group’s commitment to the plant and the Sabah market is reflected in its RM18 million investment which comprises not only the line, but also supporting infrastructure including new utility plants such as water treatment, wastewater treatment, a cooling plant, boiler and air compressor to ensure greater production efficiency and a greener plant.

Alvi said the state-of-the-art wastewater treatment plant, which uses an anaerobic system that is compact and efficient to treat production effluent, meets the requirements of the Department of Environment and is the first of its kind in Sabah.

“The KK Plant is also the first to use ultrafiltration (UF) technology to produce high quality treated water used in bottling our products. Similar to our Shah Alam facility, the KK plant uses both the on-line and off-line mode for PET bottles supply,” Alvi explained.

The PET line is fully automated and utilises electronic and automation technology. Production volume can be doubled or tripled by increasing the number of shifts. The plant also houses a warehouse with a storage capacity of up to seven days of supply for the local market.

The line is expected to improve efficiency within F&N’s distribution chain in Sabah, while contributing towards the development of local industry and enhancing job creation opportunities. Currently, the plant employs 74 people in various capacities such as production, sales, marketing and administrative functions.

F&N Beverages Marketing Sdn Bhd and F&N Beverages Manufacturing Sdn Bhd (collectively F&N Beverages) form the soft drinks division of Fraser & Neave Holdings Bhd. F&N Beverages is Malaysia’s largest soft drinks distributor and manufacturer and has a total workforce of about 1,400 employees in 23 offices throughout the country. The company operates four manufacturing plants nationwide, including a state-of-the-art facility at its headquarters in Shah Alam, Selangor. F&N Beverages distributes F&N products comprising 100PLUS, F&N Fun Flavours, SEASONS, Fruit Tree, Ice Mountain Mineral Water and F&N Cordials. In Malaysia currently, the company also distributes Red Bull products. For more information, please visit www.fnbm.com.my

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