Local giant Thong Guan Industries Bhd will invest RM40 million to expand its manufacturing facility at a 24-acre site in Sungai Petani, Kedah by installing four high capacity production lines, comprising blown film and stretch film lines imported from Europe.
Installing these four lines would raise the company’s production capacity to 265,000 tonnes per annum from 230,000 in 2022 and it is envisaged that the installation will be completed in mid or end of 2023.
The company plans to sell more than 30 percent of its stretch film products to Europe and North America while the Japanese market will continue to contribute about 15 percent this year to their revenue.
Before the Covid-19 pandemic, Thong Guan had invested over RM200 million to set up three production facilities at the new site which was originally 16 acres but was increased to 24 acres with the acquisition of another eight acres.
The plan is to ramp up packaging capacity as the first plant would produce stretch film materials, while the other two plants will focus on courier bags and premium food packaging products, which will drive this year’s growth.
Other countries and regions that are important to Thong Guan are the Asean, Australia and New Zealand, South Africa, South Korea and Middle East markets which are expected to contribute about 40 percent of revenue.