KUALA LUMPUR: Hai-O Enterprise Bhd will review its distribution agreement on ultra heat treatment (UHT) milk products after the current melamine-tainted milk scare in China has blown over.
Executive director Tan Keng Song said the company would make a stand once it had clearer picture on the issue.
“We have contacted the manufacturer and are waiting for them to solve the problem and pass us the latest report,” she told StarBiz yesterday.
The company announced to Bursa Malaysia early last year that it had entered into an exclusive agreement with the Inner Mongolia Mengniu Dairy (Group) Co Ltd to be the distributor/agent of “Monmilk” UHT milk products in Malaysia.
Mengniu Dairy, the largest milk producer in China by market value, is listed on the Hong Kong Stock Exchange. Some of its products were recalled when they were found to contain an industrial chemical.
Tan said the company had not yet imported any UHT products despite having the approval from the Department of Veterinary Services on June 16.
“We have put the project on hold now as we are not sure whether the ingredients used are safe,” she said, adding that the original plan was to import UHT products by year-end.
Tan said the company was not looking for other sources for UHT products now.
“We have received a notice from the Ministry of Health telling importers or agents not to import any diary products from China,” she said, adding that the melamine milk scare would not affect the company’s financial performance as it had not imported the products.
Tan said Hai-O was still in the process of setting up a subsidiary in Guangzhou. “We intend to export our herbal, tea, healthcare and coffee products to China but no timeline has been set,” she said.
On plans for a new warehouse and factory in Kapar, Selangor, Tan said the company was reviewing them because of the hike in construction costs.