Gardenia to build first bread factory in Sarawak with RM30mil investment

The factory at Samarahan Industrial Park is expected to begin production next year and create up to 500 jobs.

The signing was between Kim Teck Cheong Consolidated Bhd (KTC), the exclusive manufacturer and operator of Gardenia in Sabah, Sarawak and Indonesia, and Sanjung Etika Sdn Bhd, a wholly owned subsidiary and investment arm of Yayasan Sarawak.

The RM30 million factory, to be built at Samarahan Industrial Park, is expected to begin production in 2027 and create up to 500 jobs as operations expand.

Deputy premier Dr Sim Kui Hian welcomed the project, saying it would allow Sarawakians to enjoy freshly baked Gardenia bread produced in the state.

“We are grateful for this opportunity because with the factory being built here, Sarawakians will finally be able to enjoy fresh Gardenia bread without having to buy it all at KLIA before flying home,” Borneo Post quoted him as saying at the signing ceremony in Kuching today.

The MoU was signed by Kim Teck Cheong executive director Dexter Lau and managing director Lau Kok Sing, and Sanjung Etika board members Hatta Solhi and Jolly Marikan.

Dexter said the company would initially target production of about 6,000 loaves a day.

“However, only about half of that will be released for sale at the beginning because we need to ensure the production line is operating consistently and reliably.

“Once we are confident everything is running smoothly, we will gradually increase production to between 10,000 and 20,000 loaves daily,” he said.

He said Gardenia products would be distributed through existing retail outlets in Kuching, Sibu, Bintulu, Miri and other parts of the state, instead of opening dedicated Gardenia stores.

“We do not intend to compete with Sarawakian retailers. We want to complement them by helping increase their sales, profitability and customer traffic in the bread category,” he said.

Dexter said Gardenia bread produced in Sarawak would be priced on par with bread sold in Sabah, allowing consumers in the state to avoid paying the higher prices associated with imported supplies.

He said Gardenia’s “Sarawak Edition” would feature packaging inspired by the colours of the state flag, with the company also planning to introduce other products exclusive to the state.