Malaysia's GW Plastics Holdings Bhd is investing 37.2 million Malaysian ringgit ($12 million) on expanding production capacity by 34 percent to meet increasing business orders.
GW acquired a blown film extruder, which it recently fired up, and it plans to add a cast film extruder by early next year, CEO Lim Kok Boon said in a prospectus launched in conjunction with the company's initial public offering.
The two extruders will increase GW's annual extrusion capacity to 136 million pounds per year, from 101.6 million pounds.
An 83,000-square-foot factory block is being built on GW's existing premises at Rawang.
Lim said GW is operating its facilities at full capacity to cope with strong demand from both local and overseas markets.
The capital expenditure on machinery and factory is being financed by the IPO proceeds as well as internally generated funds and borrowings, Lim said.
In addition, GW has purchased a new eight-color flexographic printer and two new wicketed bag-making machines. One bag-making unit is operating and the second will begin using the other by the end of this year.
Application for GW's IPO closed Oct. 4, with its listing to be on the Kuala Lumpur-based Bursa Malaysia stock exchange by end of October.
We believe that there has never been a more exciting time for the [flexible packaging plastics] industry than the present. Our business expansion and IPO will only serve to bring us to greater heights as we continue to strive to provide the best for our customers, Lim said.