28 May 2008 – Dutch Lady Milk Industries Bhd, a Royal Friesland Foods NV unit and Malaysia's largest dairy company, will invest between RM100 million and RM120 million (between $31 million and $37 million) over the next three years to upgrade and expand its Petaling Jaya plant, local media report.
The move is part of Dutch Lady’s plans to boost sales. The company currently accounts for around 20% of Malaysia’s dairy market.
The group doesn’t expect to repeat its 2007 performance with regard to profits because of higher raw material costs. The price of skimmed milk powder, for example, rose from $2,200 per tonne in late 2006 to $5,000 per tonne at the end of 2007, Dutch Lady Managing Director Johannes Laarakker was reported as saying.
Dutch Lady has no immediate plans to increase the prices of its products, he added.