TAPAH, Aug 28 (Bernama) — Industrial paper bags manufacturer KYM Holdings Bhd (KYM) is investing RM6E million to modernise its factory and introduce the latest processes in its effort to boost exports to the Asian region.
The investment comprises RM20 million for plant modernisation and RM45 million for machinery and equipment, signalling the company’s commitment to continuing to improve product quality and coming up with low-cost and susitainable packaging solutions.
KYM subsidiary Hasrat Meranti Sdn Bhd’s (Hasrat Meranti) new plant in Tapah was opened by State Investment and Corridor Development Committee chairman Datuk Seri Ir Mohammad Nizar Jamaluddin today.
Hasrat Meranti Managing Director Mok Tuck Meng said the investment wilt raise the company’s annual production capacity by 50 per cent 10 236 million paper bags from 150 million currently.
“Our exports nave increased 62 percent from RM18 million in 2017 to RM29 million this year. With the enhanced capability to deliver top quality products, and our collaboration with Swedish company BillerudKorsnas AB, we will be able to increase our exports and penetrate new markets,“ he said.
Also present were KYM Chairman Datuk Seri Dr Isahak Yeop Mohamad Shah and Non-Executive Director Darren Lee, Billeruidkersnas Senior Vice President Packaging and Paper Johan Neliback, and Swedish Embassy advisor Ola Pihlblad.
Mok said Hasrat Meranti currently supplies 80 million industrial paper bags annually to BillerudKorsnas for the Asia market.
Both companies are also collaborating to produce innovative bags and jointly market cement and non-cement products.
“In Malaysia, we are the dominant player in the supply of cement package bags, commanding a 40 percent market share in the Peninsula.
“We are also committed to building a more sustainable business environment. In addition to introducing the most advanced manufacturing technology from Germany, we will continuously focus on upskilling our people and implement more socially responsible measures such as waste reduction and create a cleaner, healthier environment for everyone,” he said.
The company exports about 35 per cent of its industrial bags to Thailand, Indonesia, Vietnam, the Philippines, Brunei, Hong Kong, India and Mauritius.
It has been seeing double-digit growth in export revenue, with a compound annual growth rate of 13.3 per cent over the last 10 years.
Meanwhile, Mohammad Nizar expressed hope the KYM plant could attract other investors to Tapah and boost the state’s economy.