Haisan to tap halal food mart with cold-chain facilities
10 July, 2003

Haisan Resources Bhd, an integrated refrigeration player, plans to tap the lucrative global halal food market worth an estimated RM65.7 billion annually.  An expert in temperature-controlled logistics and services, the company has sufficient cold-chain facilities to preserve the freshness and quality of halal food, which includes livestock, aquatic and crop commodities.

The quality of meat-based products, fruits and vegetables will depreciate very rapidly especially in the tropical climate if they are not stored or kept properly refrigerated, said Managing Director, Ong Chin Yet.

“We are excited about the Government’s drive towards the halal food environment as well as the substitution of food imports.  Our adequate infrastructure in the form of cold-chain facilities and expertise will enable us to guarantee product freshness and quality,” Ong told Business Times in Port Klang recently.

Last year, Malaysia’s food exports rose 17% to RM7.42 billion from RM6.34 billion in 2001, while food imports during the period were up by 4.5% to RM12.43 billion from RM11.89 billion. 
According to the Malaysian Agricultural Research and Development Institute, the market size for chilled and frozen food in Malaysia is projected at RM3 billion in 2005 and RM5.5 billion in 2010.

Currently, Haisan provides temperature-controlled logistics for storage purposes and value-added activities, such as packaging and labelling.  The company’s state-of-the-art modern loading facilities ensure no “break in cold chain” throughout the process of transfer from containers to the facilities and to end-consumers.

Haisan’s temperature-controlled logistics and warehousing services contributed 40% to the group’s revenue of RM40.35 million last year.

The company is also a leading fabricator-contractor of industrial refrigeration equipment in Malaysia. Some of its experiences include designing, fabricating and installing refrigeration equipment and facilities in Malaysia, Indonesia, Myanmar and Vietnam.

Haisan’s third core business is the manufacturing of ice in the forms of block ice and tube ice for the fishery industry and the industry’s use in the wholesale market.  The tube ice is mainly sold to ice dealers and agents who, in turn, distribute to end-users.  Currently, Haisan has the capacity to produce 300 tonnes of block ice and 200 tonnes of tube ice a day.

On its international expansion, Ong said Haisan expects the completion of the second phase of its associate company, Integrated Global Low Temp Operations Philippines (Iglo Philippines), by the middle of this month.  Iglo Philippines, which is 37.5% owned by Haisan, is a joint-venture company formed by Haisan’s wholly-owned subsidiary Iglo International Ltd and RFM Corp Inc, a renowned food and beverage player in the Philippines.

Iglo Philippines, in which Haisan has invested RM35 million, provides temperature-controlled facilities, distribution services, value-added cold processing and related services.

As for its Chinese operation, Iglo (Guangzhou) Co Ltd, Ong said Haisan will be able to expand its production from the current 1,700 to 4,000 pallets by year-end.  Iglo Guangzhou, which is wholly-owned by Haisan, was incorporated in February this year to provide total temperature logistics services in China’s Guangzhou province for Walls China.

Adapted from "Business Times", 10 July, 2003