Food Empire Holdings to open production facility in Kazakhstan

Food Empire Holdings looks to develop coffee-mix sachet production facility in Kazakhstan, its first in Central Asia.

Food Empire Holdings has been awarded a 10-hectare plot of land in the Khorgos Special Economic Zone (SEZ) in Kazakhstan to develop a new coffee-mix production facility.

The company is expecting to receive regulatory approvals to commence construction by June, with the facility in full operation by the end of 2025, where it will produce coffee-mix sachets under Food Empire’s various brands, including its flagship MacCoffee brand, which are sold in over 60 countries. 

This will be the group’s first manufacturing plant in Central Asia. It currently has eight other manufacturing facilities located across Asia and Eastern Europe, as the group considers the proximity of its manufacturing facilities to its core markets, including Russia, Ukraine, Kazakhstan and CIS markets and Indochina. 

With an initial investment outlay of US$30.0 million ($40.5 million), the new facility will occupy half the plot, leaving room for future expansion. 

Due to its location in one of Kazakhstan’s SEZs, the facility will also be eligible for special provisions such as tax benefits.

The project was announced by executive chairman, Tan Wang Cheow, at the Kazakhstan-Singapore Business Forum on May 23, which included guests Kassym-Jomart Tokayev, President of the Republic of Kazakhstan, as well as Deputy Prime Minister of Singapore, Heng Swee Keat.

“Revenue generated by our Ukraine, Kazakhstan and CIS Markets segment has been on the uptrend since FY2016 and annual sales from the segment crossed the US$100.0 million mark for the first time in FY2023 . Kazakhstan has been key to the growth from these markets and an important cornerstone in our plans to expand our business and solidify our market leadership position in Central Asia,” says chief executive officer, Food Empire, Sudeep Nair.

He concludes: “The new facility will enable us to meet the rising demand for our instant coffee sachets that are sold under various brands across our core markets where we enjoy strong brand equity and market share.”

Shares in Food Empire closed one cent or 0.91% up at $1.11 on May 23.