EGG producer LTKM Bhd (7085) expects its diversification into processed glass manufacturing to start contributing to earnings in the financial year ending March 31 2012.
Managing director Tan Kok said the company has allocated RM35 million to build the glassmaking plant in Klang, Selangor.
Operations are scheduled to start by early next year.
The plant will have annual production capacity of close to 200,000 sq m of glass, Tan said after LTKM's annual general meeting in Shah Alam, Selangor, yesterday.The new business will be managed by LTKM's subsidiary, Lumiglass Sdn Bhd.
Tan said that although the diversification offers an opportunity for the company to reinvest and diversify its income sources, poultry business will remain its core activity and key financial contributor."
However, we expect the poultry business to be more challenging due to stringent operating requirements, higher prices of raw materials and keen competition from other egg producers," he said.
LTKM's 160ha poultry farm in Malacca produces more than a million eggs a day.
Almost 60 per cent of the eggs are for the domestic market, while the balance is exported to Singapore.
The company's main brand is "LTK Omega Plus".
In the financial year ended March 31 2010, LTKM's pre-tax profit jumped 74 per cent to RM21.069 million from RM12.132 million in the previous year.Revenue, however, eased 2 per cent to RM131.429 million from RM133.537 million. - Bernama Read more:
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