Malaysian packaging firm SCGM investing $3 million in new production

By Gurdip Singh
Correspondent

Published: July 14, 2014 3:56 pm ET
Updated: July 14, 2014 3:59 pm ET

Related to this story

Topics Asia, Beverage

KUALA LUMPUR, MALAYSIA — Malaysian disposable packaging manufacturer SCGM Bhd is investing 10 million ringgits ($3.12 million) in a plastic cup manufacturing line.

The company said it will get the machine from Italy and molds from Germany to produce more than 800 cups a minute, or about 1.3 million a day. The line is scheduled to start production in November.

SCGM Chairman Lee Hock Seng said the new equipment will boost sales by 10 percent.

Raw material prices were expected to remain fairly stable in the current year, Lee said in the latest filing with Bursa Malaysia.

“However, inputs such as oil and power are expected to have some impact on the margins in 2015. As such, we are expecting the profits to be at least maintained going forward to the next quarter as the global economy is expected to recover gradually.

“Marketing expansion plans for the overseas markets is continuing, particularly, to Asian countries. The new product line, plastic cups, will also help to support profit margins,” Lee said.

SCGM reported a net profit of RM11.53 million ($3.6 million) for the year ended April 30, up 45 percent from a year ago.

Sales rose to RM100.3 million ($31.25 million) from RM97 million ($30.22 million).


Comments

Malaysian packaging firm SCGM investing $3 million in new production

By Gurdip Singh
Correspondent

Published: July 14, 2014 3:56 pm ET
Updated: July 14, 2014 3:59 pm ET

Post Your Comments


Back to story


More stories

Image

Lawmakers target plastic bags, bottles

September 18, 2014 2:19 pm ET

California is poised to ban single-use plastic bags. At this point Gov. Jerry Brown could still veto the bill, but that seems extremely unlikely.    More

Image

PET to PET boosts recycling capacity

September 18, 2014 11:14 am ET

PET to PET Recycling Austria GmbH, a bottle-to-bottle PET recycling operation backed by Coca-Cola Hellenic Bottling and several beverage...    More

Image

Plastics News Now: Local Motors 3-D prints a car

September 18, 2014 6:00 am ET

A time lapse of the car being printed, we visit a rigid package manufacturer who is expanding and the strong M&A market might continue according to...    More

Image

NY packaging company aims for zero waste

September 16, 2014 1:36 pm ET

Plastic folding carton maker Diamond Packaging is no longer sending any manufacturing waste to landfills.    More

Image

Vanee Foods adding hot-fill line

September 15, 2014 1:55 pm ET

Vanee Foods Co. expects to have a new hot-fill bottling line operational at its Broadview, Ill., facility by the end of this month.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events