US based Darden to invest RM1bil in world’s first integrated lobster aquaculture park in Sabah

PETALING JAYA: Darden Aquasciences Sdn Bhd, a subsidiary of US-based Darden Restaurants Inc, will pump in some US$300mil (RM1bil) to join forces with two Malaysian companies to develop the world's first integrated lobster aquaculture park, or iLAP, in Sabah under a US$600mil (RM1.86bil) deal.

The two Malaysian companies are Ever Nexus Sustainable Seafood Sdn Bhd and Inno Fisheries Sdn Bhd, a subsidiary of Yayasan Sabah Group.

In a project supported by Invest KL, Malaysian Investment Development Authority, Biotech Corp and Yayasan Sabah, 40 million pounds of lobster are expected to be produced annually once it reaches full capacity, with projected annual sales of RM3bil by 2029. All lobster output produced will be taken up by Darden.

The tropical spiny lobster, also known as the King Lobster' will be the breed of lobster that is bred in Sabah.

Presently, iLAP will have a sea space of 9,300 ha, supported by three lobster hatcheries. It will create 14,000 jobs by 2022, in line with the Economic Transformation Program.

Jobs created include a wide specturm of skills ranging from PhD and Masters level scientists and engineers, to aquaculture specialists and skilled aquaculture technicians. iLAP will also partner Malaysian universities, TalentCorp and other government entities to develop talent.

“The first stage of commercial hatchery will begin in June 2013 while the first batch of lobsters for commercial consumption is anticipated to be ready by June 2015. The iLAP project will start to see significant production in eight years time,” said Darden Aquafarm Inc President Bill Herzig

Darden will also make Malaysia its hub in Asia-Pacific, and intends to eventually introduce its chain of restaurants such Red Lobster here. It plans to establish a regional operations hub in the country to assist with potential future restaurant growth in the Asian market.

“We definitely see lots of potential in this part of the world. We are looking to expand in Asia Pacific and bring in some of our brands here.

“We'll probably start in Malaysia. Right now we are mostly in North America, but we have also started to have a presence in the Middle East and Mexico,” said Darden Inc chairman and chief executive officer Clarence Ortis Jr.

Ortis added that the global demand for seafood was increasing, particularly for shrimp, fin fishes and lobsters.

Darden International president Kim Lopdrup said that should it introduce its restaurants in Malaysia, it will most probably be halal' certified with some 10% of the menu consisting of local food.

“However for consistency purposes there will still be a high degree of standardization with our chain of restaurants in the United States,” said Lopdrup.


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