QL Resources to allocate RM280m for capex

QL Resources Bhd will allocate RM280 million for its capital expenditure (capex) over the next two years, its managing director Chia Song Kun said today.The investment will be used for upgrading existing plants and machinery, factory expansion and plantation development in Indonesia, he said.

"We are allocating RM130 million for 2010 and RM150 million for 2011 for our three core activities, namely integrated livestock farming, palm oil activities and marine products manufacturing," he told reporters after the company's annual general meeting (AGM).Chia said QL Resources will restart its proposed integrated poultry project in Vietnam within this current financial year.

The project is expected to cost between RM30 million to RM40 million over the next two financial years from the initial cost of RM50 million, he said."The project was put on hold in the last two years due to the global economic downturn," Chia said."We will come up with a new plan on a smaller scale but it is not finalised yet," he said.On its merger and acquisition (M&A) activities, Chia said M&A activities were currently put on hold due to the economic uncertainties."We put these on hold and do not want to go in aggressively.

But there are talks going on but nothing specific," he said.The company completed the acquisition of minority interests in some firms during the year, including a 20 per cent equity interest in QL Fresh Choice Seafood Trading Sdn Bhd, 27.27 per cent equity interest in Figo Food Sdn Bhd and 2.4 per cent equity interest each in QL Fishmeal Sdn Bhd and QL Foods Sdn Bhd.It also increased its equity interest in QL Endau Marine Products Sdn Bhd by 3.57 per cent from 62.32 per cent to 65.89 per cent.

Asked about the palm palette project, Chia said this was still in the research and development stage.The project involved converting empty fruit bunches into palettes for use as renewable fuel, he said, declining to provide further details. - Bernama