Swiss-Irish food group Aryzta has announced it has more than doubled its manufacturing capacity in Malaysia.
In a statement, the Cuisine-de-France owner said it exercised its option to acquire the bakery, equipment and the corresponding land of its co-manufacturer De-Luxe Food Services from Envictus International Holding Limited.
The option to acquire the assets was part of the original agreement with Envictus, it said.
Aryzta noted that the current bakery in Bangi will be closed and sold and no relevant restructuring or impairment charges will be triggered.
NPD And Innovation
The transaction will expand Aryzta’s Asian product capability in breads, buns and pastries including new product filling capacity, which will 'greatly enhance the pace of new product development and innovation.'
Urs Jordi, chair and interim CEO, Aryzta AG commented, “We are pleased to report on our strategic expansion in the growing Asian bakery market."
The addition of this new well invested, Halal certified bakery, will enable Aryzta to meet its growing customer demands in the food service and Quick Service Restaurant (QSR) channels in Malaysia and also expand its exports to other Asian markets.
Jordi noted, "This expansion is strengthening our relevant position in Food Service and QSR in this region.
"Our work on inflation price recovery is on track while continuing to focus on disciplined cost management to deliver improved performance," he added.
The transaction significantly improves the resilience of Aryzta’s supply chain in the region with the direct ownership of this new modern facility.
Separately on a group level, Aryzta confirmed that pricing discussions to date are progressing well and that it is on track to reach its communicated objectives.