PPB allocates RM401mil capex to expand operations

KUALA LUMPUR: Investment holding and property investment company PPB Group Bhd is allocating RM401mil as capital expenditure (capex) to strengthen its core businesses over the next three years.

Managing director Lim Soon Huat said of its six business segments, the grains and agribusiness division would receive the biggest chunk at RM138mil for expansion purposes, including that of its flour mills in Pasir Gudang and Vietnam.

He said the film exhibition and distribution segment would obtain the second highest amount at RM215mil to build new cinemas, as well as upgrade and extend existing ones.

“The remaining RM48 million is earmarked for the company’s property segment, environmental engineering and utilities, and consumer products,” he said during the company’s analyst briefing.

PPB group director Datuk Ong Hung Hock said the milling capacity of the company’s plants in Pasir Gudang, Johor, and Vietnam would be increased from 500 tonnes of wheat per day to 1,750 tonnes.

“Our revenue for the financial year ended Dec 30, 2016 was mainly contributed by increased flour sales, and we believe this segment will continue to sustain this year.

“The fact that FFM Group (a subsidiary of PPB) is expanding its flour milling capacity in Pasir Gudang and Vietnam shows that business is resilient,” he added.

PPB’s major operations include flour and feed milling, grains trading, marketing, distribution and manufacture of consumer products, film exhibition and distribution, as well as property investment and development. — Bernama