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SMELLING THE COFFEE IN SELANGOR - HACO ASIA PACIFIC SDN. BHD.

Selangor Persoectives : September - December 2005.
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Covering an area of six acres, a massive field of red dusty soil is about to emerge as the region's latest coffee hub as Haco Asia Pacific Sdn. Bhd. (HAPSB) turns to this part of Kota Kemuning Industrial Park for the establishment of its production facility of soluble coffee. HAPSB of Haco Group has already invested RM120mil for the project so far, thus ensuring an efficient rate of production of soluble coffee for local and export markets ranging from Thailand and the Phillipines to Australia and Japan.

"Thailand is growing their own coffee and even Vietnam has their coffee," says Haco President, Dr. Peter H Speck. "In Malaysia, not much coffee is grown," explains Dr. Speck when asked on Haco Group's decision to locate its plant in Selangor. "But the most important thing is we are allowed to import coffee. In this business, we need to get supplies from all over the world because it is vital for a company like us to be able to produce different kinds of coffee taste to cater the needs of our clients and most importantly, sustain the quality that is Haco".

Flexibility, according to Dr. Speck, is not the only reason that influenced Haco's decision to locate its regional hub in Kota Kemuning. "Asia is growing fast. Haco is already in Europe and the United State and there's a need to have a chain and sustain a market in Asia", he explains. "Of course, we looked into the country's political stability among other things, besides the currency stability and its import-export trade. Singapore did fit our needs but it is costly. Malaysia attracted us more, especially for land acquisition purposes which we need to expand our businesses in the near future and which is not limited to coffee production".

Selangor's socio-economic growth and development, besides its logistic capabilities caught the interest of the group's long term investment plans. "From Singapore, we came across the border to Johor which was fine. But then, somebody suggested Selangor" and now that the group had made Selangor its Asia Pacific Regional Base, what does he think of the group's decision?

"There's nothing wrong with Selangor," he exclaims. "It's heaven and it has the potential for business expansion as the facilities are of international standards".

"I came here in January 2004, looked at three different spots and I left the next day with decision, a plant site and an agreement, all hassle free. In Selangor, everything went smoothly and we were given assistance whenever we needed it and the efficiency made things easier for us".

"Only last May 2005, we had the ground breaking for the new plant and the pace of construction is amazing. If we were to have built plant like this in Europe, it would have taken us twice as long. Just to acquire a piece of land, you have to wait for weeks or even months. Here in Selangor, the authorities have made sure thaht things have gone smoothly. as a result of this, I believe by anuary 2006 our newest plant can start operations".

Established in 1922, Haco Group produces bouillons, soups, sauces, ready-to-eat dishes, cereal bars, breakfast beverages and food ingredients besides instant coffee, decaffeinated coffee and tea for the retail trade, food services companies, food industry and large companies for private label products.

In fact, the company's soluble coffee is being used by many world famous labels, including in the production of drinks, ice-creams and cakes.

Selangor, according to Dr. Speck, is the perfect location for Haco's headquaters in Asia. In particular, the plant's Shah Alam location has fulfilled the group's needs, especially with its location close to the Kuala Lumpur International Airport (KLIA) with its strategically important international air connections.

Those factors, he notes, created a platform for further business expansion, including their second stage plan to establish their sales office and later, producing other haco products. He points out that the company started off with its coffee plant portion of its Asian plans as it was the most complicated component whereby a lot of infrastructure was needed in the form of energy, cooling and storage facilities.

He brushes off the suggestion that Haco is the leading producer in coffee products, instead stating that they "do not make cheap coffee but top quality coffee". As the business becomes fully operational soon, it will not only create employment opportunities but the transfer of technical knowledge will also be possible, thus doing its part towards making Selangor Maju 2005 as reality.

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SSIC Berhad (481741-M), 24th Floor, Wisma MPSA, Persiaran Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan, Malaysia.
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