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Orgabio’s Two Additional Production Lines Operating At 70 Pct Utilisation

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Oct 22 (Bernama) -- Orgabio Holdings Bhd’s two additional production lines are operating at about 70 per cent utilisation rate, and this has strengthened its manufacturing capabilities to accommodate customers’ beverage premix requirements.

Chief executive officer and executive director Ean Yong Hien Voon told Bernama that the overall production capacity at the group’s new factory stands at about 40 per cent.

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Orgabio had disclosed plans to invest about RM4 million in a new factory, including installing two additional production lines, at its November 2025 AGM. Its plans have now come to fruition.

Ean Yong said the production lines are not dedicated to specific beverage categories but are primarily driven by individual customers’ requirements.

“Our production lines can be adjusted to accommodate different product formulations and specifications, including conventional coffee and tea premixes, functional beverages and wellness-related products,” he said.

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Ean Yong said the flexibility of its existing manufacturing infrastructure and available production capacity means the group does not foresee an immediate need for additional capital expenditure specifically dedicated to wellness-related products.

“Moving forward, we will continue to optimise our production capabilities and assess our capital expenditure requirements in line with customer demand and business growth,” he added.

As a business-to-business manufacturer, Orgabio works closely with brand owners to develop and manufacture beverage premixes according to their specific requirements.

Customers’ purchase orders drive production, with manufacturing schedules determined by demand and order volumes rather than fixed production timelines, he said.

 

Additional  Warehousing Capacity

 

Ean Yong also said Orgabio’s proposed property acquisition forms part of its broader efforts to strengthen operational infrastructure and support the group’s long-term business requirements.

The group had proposed to acquire a freehold industrial property in Semenyih, Selangor, for RM11.26 million for warehousing purposes in September.

The acquisition is pending loan disbursement and settlement of the remaining purchase consideration, he said.

“We intend to utilise the facility on an ‘as-is, where-is’ basis, with an estimated additional capital expenditure of about RM1 to install a firefighting system and a new storage racking system, with operations expected to commence in 2027,” he said.

The additional facility will primarily address storage space constraints at its Bangi and Beranang factories, thus, enhancing inventory management and operational flexibility.

Sufficient warehousing and storage facilities are important to support production planning and maintain a reliable supply chain. He said actual cost efficiencies and operational benefits will depend on the facility’s eventual utilisation and operational requirements.

– BERNAMA