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Orgabio’s two additional production lines reach about 70 per cent utilisation

The beverage premix manufacturer also plans to use a proposed RM11.26 million property acquisition in Semenyih for warehousing.

Beverage production equipment and storage racks inside an industrial facility
Photo: BERNAMA

Orgabio Holdings Bhd is running its two additional production lines at about 70 per cent utilisation, chief executive officer and executive director Ean Yong Hien Voon told Bernama. He said the lines provide capacity to meet customers’ requirements for beverage premixes.

The equipment can be adapted for different formulations, including coffee and tea premixes, functional drinks and wellness products, rather than being assigned to particular beverage categories. Ean Yong said existing capacity and manufacturing flexibility meant Orgabio did not anticipate an immediate need for capital expenditure specifically for wellness-related products.

Orgabio manufactures for brand owners, with customer orders determining production volumes and scheduling. Ean Yong said the group would assess future capital spending against customer demand and business growth while seeking to make better use of its production capabilities.

For storage, the group proposed in September to buy a freehold industrial property in Semenyih, Selangor, for RM11.26 million. Ean Yong said completion remained subject to loan disbursement and payment of the outstanding purchase consideration.

Operations at the proposed warehouse are expected to begin in 2027. The facility is intended mainly to relieve storage constraints at Orgabio’s Bangi and Beranang factories. Ean Yong said any cost savings and operational gains would depend on how the warehouse is ultimately used and its operating requirements.

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