PETALING JAYA: Daibochi Plastic and Packaging Industry Bhd will spend RM45mil over the next three years to build a new manufacturing plant.
“In line with our expansion and positive outlook, we have decided to invest in a new manufacturing plant.
“It will give the group greater capacity to capture substantial market share in the growing flexible packaging sector in the region,” managing director Thomas Lim said in a statement.
The company also announced that it would acquire three plots of vacant freehold industrial land totalling 5.23 acres in Jasin, Malacca, for the planned expansion.
“The plant will enable us to expand our in-house film-making and metallising operations to meet current and future needs of our growing clientele.
“We will commence the construction of the new factory by the second quarter of 2013,” he said.
About RM25mil will be spent by the end of 2013, which would be for the purchase of land, construction of new facilities and the acquisition of machinery.
An additional RM20mil is allocated for further investment expected over a three-year period from 2014 to 2016.
The investment will be funded by a combination of internal funds and bank borrowings.
Its existing manufacturing operations are in the Air Keroh Industrial Estate in Malacca and provides flexible packaging products to various industries.
“With the upcoming new facilities and our 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,” Lim said.