KUALA LUMPUR: YSP Southeast Asia Holding Bhd plans to invest RM30 million to build a new plant in Vietnam to manufacture veterinary products

Its chairman Datuk Dr Anis Ahmad said the production plan in Dong Nai province, Vietnam was expected to start in 2011.

“The plant will begin with the manufacture of veterinary products,” he said after the company's 8th AGM here where shareholders approved the rights issue to raise funds for the project.

The corporate exercise involved a two-call rights issue of up to 42.54 million rights shares at an indicative issue price of RM1 per rights share on a two-for-five basis.

The rights issue would enable YSP to raise funds for its expansion in Vietnam and set up new production facilities at its current plant in Bangi, as well as to repay bank borrowings.

The new plant in Vietnam would be about three times bigger than its plant in Bangi, which would then focus solely on the production of eye drops and small volume injections. Part of the funds raised from the rights issue wouldl be used to purchase equipment to manufacture the sterile products.

YSP president and group managing director Datuk Dr Frank Lee was also cautiously optimistic about the outlook for the rest of the year, saying that while the the economic outlook remains uncertain, the company would take measures to maintain its growth.

According to Lee, the company's revenue grew 8% in the first quarter of 2009 compared to the same period one year ago.

The group also hoped that its overseas contribution would increase by 10% to 20% of total revenue in five years. They also expected exportss to grow between 5% and 10% this year.

"This is a conservative estimate; if the economy were in better shape I would say that more than 10% growth is a possibility," said Lee.