SPC Group Launches New Bakery Hub in Malaysia Targeting Halal Market

In a significant move to strengthen its position in the burgeoning Halal food sector, SPC Group has completed the construction of a new bakery plant in Nusajaya Tech Park, Johor, Malaysia. This facility is viewed as a critical part of the company's strategic expansion into the substantial USD 2.5 trillion Halal food industry, which is projected to see continuous growth.

Inaugural Ceremony Highlights

On February 25, an official inauguration ceremony took place where Chairman Hur Young-in expressed the company's ambitions. He highlighted that the Johor plant will serve as a strategic base to deliver delightful and nutritious flavors to an estimated two billion Muslim consumers across Southeast Asia and the Middle East. The event garnered attention from various dignitaries, including YAB Dato' Onn Hafiz Bin Ghazi, the Chief Minister of Johor, and Yeo Seung-bae, South Korea's Ambassador to Malaysia. Their presence underlined the significance of this development for both the region and the company.

Expanding the Halal Market Reach

The Paris Baguette Johor Production Center is set to be a vital hub, focusing on providing Halal-certified bakery products to international markets. Currently, Paris Baguette operates in six Southeast Asian nations and is planning to enter Thailand, Brunei, and Laos via master franchise agreements. Moreover, expansions into Saudi Arabia and the UAE are in the pipeline, illustrating the brand's unwavering commitment to growth in these regions.

State-of-the-Art Production Facilities

The newly established facility spans an impressive 12,900 square meters and is equipped with seven production lines, capable of churning out up to 300,000 bakery products daily, summing up to nearly 100 million annually. The total investment for this plant amounts to approximately USD 56 million—boosting its initial budget—primarily to implement advanced automation and enhanced safety protocols. These improvements mean that Paris Baguette will be in a stronger position to deliver fresher, top-quality products to the Southeast Asian and Middle Eastern consumers, thus reinforcing its brand competitiveness. Additionally, there are plans to broaden the range of Halal-certified products available in North America, Europe, and Africa.

SPC Samlip's Role and Future Plans

SPC Samlip, a subsidiary of SPC Group specializing in food manufacturing and distribution, is also looking to make strides at the Johor facility. The company has plans to produce export-focused Halal products from the new plant. The establishment of a new ASEAN subsidiary is expected to further bolster its operational framework in Southeast Asia and beyond. This subsidiary will not only distribute finished products created in Korea but will also provide frozen dough to various establishments such as cafes, hotels, and large retailers. On top of that, SPC aims to develop customized B2C products that cater to local market demands, further accelerating its retail sector presence.

Government Support and Economic Impact

The importance of the new production center was echoed by Saskatchewan's Chief Minister, who stated the establishment of this Halal-certified hub signifies a substantial advancement for Johor and Malaysia at large. The facility not only enhances Johor's integration within the Johor-Singapore Special Economic Zone but also promises to create numerous job opportunities while contributing positively to the local economy—an outcome that paints Malaysia's profile as a globally recognized leader in Halal food production.

Looking Ahead: Global Expansion Goals

As SPC Group looks ahead, President Jin-soo Hur noted that the Johor Production Center represents a pivotal achievement in fortifying their global supply chain, paving the way for sustainable growth. This plant will act as a catalyst for speeding up their international reach. SPC is diligently working on establishing production facilities in key global regions, including current operations in China and future plans in Texas, USA, aiming for a total of 12,000 stores worldwide by 2030 as part of their Vision 2030. The future appears promising for SPC Group as it enhances its capacity to meet rising consumer needs, particularly in the Halal market.