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Friday, 14 August 2020 07:24

Ni Hsin, Fiatec to jointly develop health, bioenergy products

KUALA LUMPUR: Ni Hsin Resources Bhd has teamed up with Fiatec Biosystem Sdn Bhd to develop health and bioenergy products for its new food and beverage (F&B) business.

Fiatec is engaged in developing health and functional food and beverage while providing research and development (R&D) support. 

Since its establishment in 2004, it has expanded its business activities to Asean markets and other neighbouring countries such as Hong Kong and China.

According to a Ni Hsin filing with Bursa Malaysia, Fiatec will be appointed for R&D to formulate new health and bioenergy products for its food and beverage business.

The agreement was for two years, it added.

Ni Hsin Food & Beverages Sdn Bhd managing director Khoo Chee said the global health and wellness food market was poised for encouraging growth.

"The new normal has made people realise the importance of adopting healthier social habits. Following this change in consumer preference, we are excited for this opportunity to work with Fiatec to design a series of functional foods and beverages that promote health and wellness for our customers," Khoo added.

He noted that governments across Asia were also pushing for better weight management and cardiovascular health.

Fiatec will be creating products that tackle these specific problems for Ni Hsin in the initial stage of the collaboration.

"Fiatec is one of the only few companies in Malaysia that provides technical support in terms of F&B product development and innovation, and their award-winning team is made up of experts with decades of experience in F&B manufacturing. 

"We view this collaboration between our new F&B division and Fiatec as a positive step towards venturing into a new revenue-generating business," he added.

Ni Hsin had announced on July 17 its proposed diversification into the F&B segment to create a new stream of income to mitigate the risk of overdependence on its existing core businesses. 

The new segment is expected to start generating revenue for Ni Hsin from the first quarter of 2021.

On May 18, Ni Hsin's wholly-owned Ni Hsin Marketing Sdn Bhd signed a collaboration and distributorship agreement with WTK Manufacturing Sdn Bhd and WTK Technologies (M) Sdn Bhd respectively.

They will market its fabric protective mask, personal protective equipment and hand sanitiser domestically and internationally through their network in Asia Pacific, Africa, Europe, United States, Middle East and South Asia.

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