Saturday, December 4, 2004
The Star

BY ANTHONY TAN IN SUNGAI PETANI

THONG GUAN Industries Bhd will invest another RM25mil in its stretch film plant in Sungai Petani over the next two years to increase production, said managing director Ang Poon Chuan.

He said the group’s output of stretch film and other plastic packaging products was expected to increase to 140,000 tonnes a year by 2010 from 60,000 currently.

“In terms of value, the turnover is expected to grow from RM300mil this year to RM800mil in 2010,” he said at the plant's formal opening by Kedah's Sultan Abdul Halim Mu’adzam Shah on Thursday.

Stretch film is a high elongation, polyethylene based-film used to unitise and protect products during storage and shipment.

Ang said the company, which has invested more than RM180mil in its manufacturing operations so far, began making stretch film in 1997. By 2001, it was the largest producer of the product in South-East Asia.

He said the company’s products, which also include 100% degradable polyethylene bags, were shipped to more than 30 countries. The export markets contributed to almost 70% of the group's turnover.

“Our first container was sent to Japan in the early 1990s. Today, we export more than
150 containers of plastic packaging a month to Japan,” he said.

Ang said the company planned to invest US$3mil to set up its second plant in Suzhou, China, next year.

He said the Suzhou plant, to be built on 8ha near its existing plant, was expected to begin operations end 2005.

“The existing 3ha plant produces stretch film and garbage bags totally for the export market. The new plant will initially produce stretch film for the domestic market in China, which is growing rapidly,” he added.

Published : 2004-12-4