thong guan spending rm35mil to expand capacity at sungai petani plant
East Asia and Asia-Pacific region.
Datuk Ang Poon Chuan, general manager of the group, told StarBiz that one of the lines to be installed in September was installed for the stretch film division, which would increase the production capacity from 75,000 tons a year ago to 65,000 tons.
Despite a slowdown in the global market, the group is still increasing the production capacity of stretch films as it is infiltrating New markets in South America and Europe.
\"That\'s why we are increasing our capacity.
\"While Japan\'s stretch film market is still stable, other overseas and domestic markets have slowed.
\"The domestic market, which accounts for 15% of the group\'s revenue, has also recently contracted,\" he said . \".
The other two lines recently installed are for PVC food-
The wrap sector serving the ASEAN and Middle East markets.
\"PVC food has been added to this sport --
Packaging production capacity is increased by a total of 2,400 tons per year, which means that in the coming fiscal year, revenue is expected to increase by more than RM100mil per year.
\"In this regard, this meets the group\'s desire to continue to grow and ultimately become one of the largest PVC food packaging producers in Malaysia
\"The same is true in East Asia and the Asia-Pacific region,\" he added . \".
According to Ang, the group is currently exploring opportunities to establish joint ventures with some Chinese plastic packaging material manufacturers
Risk business in the northern region.
\"We want to invest about 10 RMB for the joint venture.
The venture capital business is expected to generate about 40 million yuan per year.
\"Chinese manufacturers are investing here because
A trade war between China and the United States.
\"Chinese plastic products entering the United States face 25% import tax.
\"The Chinese are also prompted as the Chinese government strictly regulates new and existing manufacturers of industrial products,\" he added . \". The 75-
A year-old packaging company is expected to achieve more than three-fold growth in revenue and production capacity.
Over the next 10 years
The group has budgeted to increase its production capacity to 400,000 tons of capital expenditure, which will gradually increase its annual turnover to Myr.
\"The annual turnover of the group should reach RMB 1 yuan.
If the market price of industrial packaging products remains between $1,600 and $1,800 per ton, then the price will remain around $ in 2020.
\"The group\'s production capacity in 2020 was 220,000 tons.
\"The actual production is about 80% of the capacity, which means that if demand grows, the income may be higher,\" he said . \".
Stretch and shrink film 2016 as per Technavio overall
2020 the global market is expected to reach $14, according to the market report.
By 2020, it will grow at a compound annual growth rate (CAGR)of over 5%.
\"In terms of income, Asia-
The Pacific region holds the largest share of the global stretch and shrink film market.
\"The region accounts for nearly 2015 of the 37% market share.
\"This number is expected to increase to more than 39% by 2020, with a compound growth rate of nearly 7%,\" the report said . \".