Brahim's to build RM150m sugar refinery in Sarawak
KUALA LUMPUR: Brahim's Holdings Bhd is set to dominate the sugar market in Sabah and Sarawak by 2015 with the setting up of a RM150 million sugar refinery factory in the Demak Laut Industrial Park in Kuching.
The sugar market in Malaysia is controlled by Felda Global Ventures Holdings Bhd's unit, MSM Malaysia Holdings Bhd, and Central Refinery Sdn Bhd, with two sugar refineries each in Peninsular Malaysia.
Brahim's subsidiary, Admuda Sdn Bhd, has a licence from the Ministry of International Trade and Industry (Miti) to manufacture refined sugar and molasses for Sabah and Sarawak.
The licence awarded to Admuda was the third by Miti in 37 years as sugar is a regulated commodity.
Admuda only recently obtained approval from the Ministry of Resource Planning and Environment, and Sarawak's Land and Survey Department (Kuching Division) to build the factory.
Brahim's executive chairman Datuk Ibrahim Ahmad said construction of the sugar refinery will commence in the current quarter and completed in two years.
"We aim to commence production by 2015. This should help equalise sugar prices between Sabah and Sarawak and Peninsular Malaysia, to benefit the people in the two states," Ibrahim told Business Times.
He added that the refinery will have the capacity to produce up to 180,000 tonnes of refined sugar per annum with a potential to expand to 400,000 tonnes.
There is annual demand of about 350,000 tonnes of sugar in Sabah and Sarawak, met via imports from Peninsular Malaysia.
Ibrahim said apart from bringing investments to Sarawak, the project will create employment opportunities for the locals and create multiplier effects on the state's economy.
"We expect this project to contribute positively to our revenue and bottom line when it is fully operational as it is strategically positioned to cater to the refined sugar demand in Sabah and Sarawak," Ibrahim said.
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