PETALING JAYA: Poultry producer CAB Cakaran Corporation Bhd plans to undertake a modern poultry farming project in Terengganu with an estimated investment of RM105 million and a potential aggregate rearing capacity of two million chickens.
The company said its wholly owned subsidiary, CAB Cakaran (Timur) Sdn Bhd (CABT), has entered into three lease agreements with the Terengganu state government for 414.63 hectares of land in Setiu and Dungun, according to a filing with Bursa Malaysia.
The land, which is designated for agricultural use involving poultry farming, will be leased for 21 years.
CAB said the project will be developed in two phases, with an initial estimated investment of RM105 million.
Under the first phase, the group plans to develop 50 chicken houses equipped with a closed-house system at an estimated cost of RM52.5 million. The facilities are expected to have an aggregate rearing capacity of about one million chickens and are targeted for completion within about two years.
The second phase will involve the construction of another 50 chicken houses, requiring a further estimated investment of RM52.5 million and adding capacity for another one million chickens. It is expected to be completed within approximately two years following the completion of the first phase.
The total investment estimate includes the construction of chicken houses, related infrastructure and supporting facilities, solar energy support systems, as well as preliminary site preparation and development works.
CAB said the RM105 million investment and development timeline remain preliminary and are subject to further planning, project specifications, construction and material costs, and the finalisation of the overall scope and costing.
The company said the lease forms part of its strategy to expand and strengthen its core operations, while allowing it to secure land for the project without incurring the significant upfront capital expenditure associated with purchasing the land.
“The long-term nature of the lease provides operational stability and enables CAB to undertake long-term planning and development” of the project, it said.
CAB said the project is expected to enhance its operational capacity and efficiency and contribute positively to its future earnings prospects, although the lease is not expected to have a material effect on earnings, net assets or gearing for the financial year ending Sept 30, 2026.