By: Gurdip Singh
July 14, 2014
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).