[Business Times] Daibochi to spend RM45m on new plant

Daibochi Plastic and Packaging Industry Bhd (Daibochi) intends to invest RM45 million in capital expenditure (capex)to expand its manufacturing facilities by building a new manufacturing plant in Jasin, Melaka.

In a statement today, Daibochi said it has entered into a sale
and purchase agreement to acquire three contiguous plots of vacant freehold industrial land in Melaka, measuring 5.23 acres in total, for the expansion.

“In line with our expansion and positive outlook, we have decided to invest in a new manufacturing plant,” said its Managing Director, Thomas Lim.

He said the new plant will provide the group with a greater capacity to capture substantial market share in the growing flexible packaging sector in the region.


The capex of RM45 million will be invested over three phases with phase one to involve RM25 million targeted for completion in 2013. This will encompass the purchase of land, construction of new facilities and the acquisition of machinery.

Phases two and three meanwhile will cover a three-year period from 2014 to 2016.

“The new manufacturing plant will enable us to expand our in-house film-making and metallising operations to meet current and future needs of our growing clientele,” Lim said.

The construction of the new factory is expected to start by the second quarter this year.

He said in the past year, the group had undertaken several measures to enhance its operations, like upgrading finishing department, implementing improved wastage-control policies and acquiring new machinery.

“With the upcoming new facilities and business development initiatives to secure customers beyond the food and beverage and fast-moving consumer goods sectors, we believe we have positioned ourselves to achieve long-term and sustainable growth,” he added.

Daibochi is a leading end-to-end flexible packaging solutions provider for globally-renowned clients in the F&B and FMCG sectors.–

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