FMF’s New Biscuit Factory Likely Ready By Year End
New factory planned to produce biscuits primarily for Melanesian market of which PNG is a big part
FMF Foods Limited’s new biscuit factory in Veisari on the outskirts of Suva is expected to be commissioned by December end.
Chairman, Hari Punja, said the $40 million investment accounts for the major portion of additions to capital assets during the 2015-2016 financial year.
“The new factory will be operated by Bakery Company (Fiji) Limited, a 100 per cent subsidiary of FMF Foods,” he said.
Mr Punja indicated the new biscuit factory is slated to produce biscuits primarily for the Melanesian market of which Papua New Guinea is an important part.
He said while there are not many commentators willing to definitely predict how long before the PNG economy picks up, everyone is convinced the direction it will most likely go from here on is upwards.
Mr Punja said other significant additions to capital assets include a new boiler installed during the year in the Group’s carton manufacturing company, Atlantic & Pacific Packaging Company Limited.
“The new boiler provides vastly improved steam supply to the factory enabling AtPack to provide its customers with better cartons and improved service delivery,” he said.
This also marked the first full year for the two new packaging products – polypropylene bags and injection moulded plastics.
“This was part of an active diversification strategy we put in place last year,” Mr Punja said.
“This was done to reduce our company’s dependence on a single product, cardboard cartons.
“I can confidently say the strategy has paid off as the company’s financials were considerably bolstered by these new lines amidst the downturn the carton business went through.
“Polypropylene bags and injection moulded products are used in large quantities by companies within our FMF Group.
“It will continue to see steady growth, even as our company steps out to harness sales opportunities outside the group as well.”