Blue Archipelago is targeting 5 per cent of the global shrimp market for a specific line of products. (Photo: Blue Archipelago Bhd)

Blue Archipelago invests USD 1.2 mln in expansion

MALAYSIA
Wednesday, April 14, 2010, 00:30 (GMT + 9)

Malaysian shrimp aquaculture company Blue Archipelago Bhd is investing MYR 4 million (USD 1.2 million) in information technology (IT) to expand itself internationally.

CEO Shahridan Faiez said this investment will allow operations to run more efficiently, including the firm’s inventory and resource management, while supporting its development plans into Europe, North America and Japan.

"We are targeting 5 per cent of the global shrimp market for a specific category of products," Shahridan said at the signing ceremony with leading provider of business software SAP and its business partners -- Ob Tech Asia Pacific and IBM Global Services -- in Malaysia.

Implementation of the IT system is expected to begin this month. It will be managed by ObTech Asia Pacific as the SAP channel partner and IBM Global Services as the consulting partner, according to Shahridan, Bernama reports.

Apart from operating a 420 ha-shrimp farm in Kerpan, Kedah, Blue Archipelago is overseeing the construction of a new 1,000 ha-Integrated Shrimp Aquaculture Shrimp Park (iSHARP) in Setiu, Terengganu.

The new centre will cater to premium export markets and generate over 70 per cent of the company’s total increased production volume once it becomes operational in early 2011.

"iSHARP Setiu, together with our existing operations in Kerpan, will have a combined production of 14,000 tonnes valued at MYR 150 million (USD 46.8 million) and manned by 2,000 employees," Shahridan detailed.

Blue Archipelago will begin exporting directly in July 2010, he said. The company currently exports via a third party.

Shahridan underscored that food safety is critical to meet stringent international standards, and that Blue Archipelago is committed to ensuring that its operations in Kerpan and iSHARP Setiu have a proper system ready to guarantee food traceability.

The Malaysian Government banned the export of aquaculture products to the European Union (EU) temporarily in 2008 due to exporters’ failure to meet the region’s health requirements.

Exports to the EU have since recommenced, and the industry's chief exporters have consequently been focusing on compliance with EU health standards to avoid a similar blunder from taking place again.

Shahridan said that to help Malaysia toward its next phase of economic growth, the aquaculture industry must shift from being a labour-intensive to a knowledge-based and market-driven sector.

Related articles:

- New shrimp aquaculture park a godsend for village
- Blue Archipelago to build USD 43 mln farm

By Natalia Real
[email protected]
www.seafood.media

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