Malaysian Noodle Manufacturer KBB Aims for Self-Reliance

Tag : Vermicelli Noodles

The group, which currently commends a 60% share of the Malaysianvermicelli market, has identified Cambodia as a potential site forgrowing tapioca, one of the raw materials it uses to manufactureits products.
KBB also plans to grow sago palm to supply its own sago starchproducing plants and for exportation. “We need to takeadvantage of the situation now and leverage on it by producing ourown raw materials which can also fetch a good price due to our highquality,” KBB executive director Kenny Ang Chor Teng wasquoted as saying.

The company’s 2007 results were affected by soaring rawmaterial costs, which resulted in a 30% increase in its operationalcosts and forced the company to increase its products’prices.

KBB is also on the lookout for potential acquisitions and iscurrently in talks with several smaller vermicelli manufacturers,add the reports.