(From left) Michael, Loo, H’ng, Soo Eng and Lee at the opening of the facility in Simpang Ampat.
Food manufacturer Federal Oat Mills (FOM) Sdn Bhd has launched its RM135mil state-of-the-art facility, which can process 60,000 metric tonnes of oats annually, at Penang Science Park in Simpang Ampat.
Its deputy managing director Michael Chew Kian Hong said the launch, originally scheduled three years ago but postponed because of the Covid-19 pandemic, was a significant achievement for the company.
“We have not only survived the pandemic but thrived, demonstrating the resilience of our business fundamentals.
“We have invested significantly in this facility, recognising the inherent risks, but we embraced the opportunity for growth and improvement,” he said in his speech during the launch.
Michael added that the company had a rich history dating back to 1965 in Penang when the late founder, his grandfather, established his grain milling ventures including renowned household brand Captain Oats.
“In the past 15 years, we have expanded our milling capacity by sevenfold.
“The facility on a 2.7ha site has a milling capacity of 10 metric tonnes per hour, a testament to its efficiency and scale.
“However, what sets this facility apart is its unique design beyond being a standard factory.
Michael (second from right) taking H’ng (right), Lee (left) and Loo (second from left) on a tour of the new mill.
“We have employee-centred offices with communal spaces to foster creativity and teamwork.
“The company invests highly in research and development to remain relevant in a constantly evolving consumer environment,” he said, adding that the new facility was designed in accordance with the latest food safety standards.
Michael said the company’s yearly turnover was more than RM100mil with 80% of products exported to over 30 countries such as China, the United Arab Emirates, Saudi Arabia, Thailand, Cambodia, Laos and Nigeria.
Also at the launch were Penang local government, town and country planning committee chairman H’ng Mooi Lye, Malaysian Investment Development Authority (Mida) chief executive officer Datuk Wira Arham Abdul Rahman, Penang Development Corp (PDC) director Datuk Seri Lee Kah Choon, InvestPenang chief executive officer Datuk Loo Lee Lian and FOM managing director Chew Soo Eng.
H’ng said the company was the 13th largest exporter of oat products in the world.
The new facility has a sprawling footprint exceeding 260,000sq ft across seven floors and it specialises in producing a diverse range of oat products including oat flakes, kiln-dried hulled oats, oat bran and oat flour.
“The expansion underscores Penang’s status as an attractive investment destination with an environment that facilitates growth,” said H’ng.
Meanwhile, Arham said the presence of this fully modern automated facility aligned with the New Industrial Master Plan (NIMP 2030) which promotes the transition away from labour-intensive models.
“FOM’s dedication to advancing its technology and capacity benefits local vendors in the supply chain, leading to positive economic spillover.
“Furthermore, the company’s halal-certified oat products have opened numerous doors in the global Muslim market,” he said.
Federal Oat Mills, a subsidiary of United Malayan Flour Sdn Bhd, is the only oat milling plant in South-East Asia and makes over 120 types of products.
