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LKB Bio to raise RM50m in three years
Published on: Friday, August 11, 2017

Kuala Lumpur: LKB Bio Innovation Co Ltd aims to raise RM50 million via the Hai Xia Equity Exchange (HXEE), an over-the-counter board in Fujian province, within three years to expand its fertiliser market in China.

Chief Executive Officer, Chia Ning Shing, said the company, which was listed on the HXEE in June this year, had already raised about RM3 million and it was confident of achieving the target.

"We plan to open a factory in Fujian using the proceeds. The factory is expected to be operational in 2019 to tap the market in China and reduce the cost of freight for exports.

"We are targeting RM12.6 million (20 million renminbi) worth of sales within the first three years," she told reporters here.

LKB Innovation today inked a Memorandum of Understanding (MoU) with Koperasi Petani Muda Malaysia Bhd (KPMMB) aimed at driving Malaysia to becoming a globally recognised bio-agriculture industry powerhouse.

The event was witnessed by Deputy Minister of Education and KPMMB Chairman, Datuk Chong Sin Woon.

"We are thrilled to work with KPMMB to expand the bio agriculture business into the international market, with China as the first overseas market," she said.

She said China was reducing the usage of chemical fertilisers and shift to green biological fertilisers and this had resulted in exponential increase in the biological fertilisers and other pollution free products manufactured by the LKB group.

LKB Bio Innovation, a unit under Malaysia-based LKB Group, a biotechnology group involved in manufacturing, product development and marketing, is one of the organisations with a licence from the Government of China to export bio-fertilisers or pollution free fertilisers to the republic.

Chia said the company had targeted sales of RM50 million from the regional market as well as China market within the next three years with the collaboration with KPMMB.

She said this was achievable as it would leverage LKB's wide range of products that came with patented technologies, coupled with KPMMB's extensive network.

Meanwhile, Chong in his speech said in facilitating Malaysia's aspiration of a high-income nation while ensuring food security, KPMMB was formed as a collective effort of the MCA Youth to promote modern farming among the youths. – Bernama

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