Seafood producer slashes 70% of workforce
By DAVID TAN
Operations hit by suspension of exports to EU
GEORGE TOWN: Texchem Resources Bhd's (TRB) indirect associate company, Seapack Food Sdn Bhd, has slashed its workforce by about 70% after being hit by the temporary suspension of seafood exports from Malaysia to the European Union (EU).
TRB owns a 49.8% stake in Texchem Corp Sdn Bhd, which in turn holds about 90% equity interest in Seapack.
Group chairman and chief executive officer Tan Sri Fumihiko Konishi said Seapack had cut its headcount last month to 80 from 300.
“Due to the temporary export suspension, the company has also reduced its monthly output by 70% to 200 tonnes. This translates to a revenue loss of about RM3mil,” he told reporters after TRB’s EGM yesterday. About 70% of Seapack's business was from the EU, Konishi added.
“Seapack is now exporting its surimi and frozen sashimi squid products to neighbouring countries,” he said.
Konishi said Sea Master Trading Co Sdn Bhd, a subsidiary of TRB, was re-directing its processed prawns, squid, and de- boned fish products to China and Japan.
“Luckily, we have strong networks in China and Japan that could absorb the company's seafood that was supposed to go to the EU,” he said.
Konishi added that the group expected the temporary suspension to be lifted in six months.
He said Sea Master was retaining its 280 workers.
Konishi said TRB was allocating RM15mil to upgrade its food division in the country and Myanmar.
“We have lined up several seafood projects which will be implemented on schedule due to rising seafood prices,” he said.”
“The projects will not be affected by rising energy charges,” he said
Asked about the impact of the recent cyclone in Myanmar on the company’s business in the reqion Konishi said its operations were in South Yangon, some 500km from the affected areas in the south-west and north-east.
“There was no casualty or damage to our operations in Myanmar,” he said.
TRB's food division contributes about 29% to the group's revenue.