1. INTRODUCTION

Further to the announcement made by the Company on 13 August 2019 regarding the completion of the proposed acquisition of a piece of freehold land located in Techpark@Enstek, Bandar Baru Enstek, Daerah Seremban, Negeri Sembilan, a Halal Hub, (“the Land”), the Board of Directors of AMB (“the Board”) wishes to announce that a new plant will be constructed on the Land at a total capital investment of approximately RM355.0 million. The Land will be home for the Company’s new plant and support facilities (“New Plant”), which will include its Corporate Office, and recreational space and facilities for its staff. 

2. RATIONALE FOR THE CONSTRUCTION OF THE NEW PLANT

The Company plans to strengthen the development and production for halal-compliant products as the recognised and established halal food and seasoning manufacturer. The New Plant will enable AMB to meet this plan which will contribute to the Company’s continuing profit growth and sustainability for the future business expansion.

3. INTENDED USAGE OF THE NEW PLANT

The New Plant will initially be for manufacturing of AMB’s current range of halal consumer and industrial products, viz., Umami seasoning AJI-NO-MOTO®, flavour seasonings, menu specific seasonings and products for the industrial food producers with capacity and space for manufacture of new products that the Company may launch. The introduction of advanced technology will enable the Company to further improve its overall efficiencies and productivity. The New Plant is designed to be eco-friendly as well as provide a work-friendly and safe environment for the Company’s staff.

4. EXPECTED COMMENCEMENT AND COMPLETION DATE OF THE CONSTRUCTION OF THE NEW PLANT

Construction is planned to commence in October 2019 and barring any unforeseen circumstances, is expected to be completed by March 2022.

5. SOURCE OF FUNDING

The costs of the New Plant will be funded through a combination of internally generated funds and external borrowings.

6. FINANCIAL IMPACT

The cost of the New Plant is not expected to have any effect on the share capital of the Company and the shareholding of the shareholders of the Company. 

However, it is expected to impact on the earnings of the Company in the initial few years of operating at the New Plant due to depreciation of the new assets and repayment of external borrowings.

7. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

Save and except for the purchase of special and customised equipment and machineries from Ajinomoto Affiliated Companies, being related parties, none of the Directors and/or major shareholders of AMB and/or persons connected with them have any interest, direct or indirect, in the contracts relating to the construction of the New Plant.

8. DIRECTORS’ STATEMENT

The Board having considered all aspects, is of the opinion that the construction of the New Plant is in the best long-term interests and sustainability of the Company.

9. APPROVALS REQUIRED

The construction of the New Plant is subject to all applicable approvals which AMB will obtain accordingly but does not require shareholders’ approval.

This announcement is dated 13 August 2019.