TAPAH: KYM Holdings Berhad (KYM) has invested RM65 million to modernise its Tapah plant and introduce a state-of-the-art industrial paper sack line to increase its exports throughout the Asian region.
The RM20 million investment for the plant and RM45 million for machines and equipment emphasised the company’s commitment to pursue excellence, and to create more sustainable, innovative and quality packaging solutions in a cost-effective manner.
The new plant was opened by state Investment, Industry and Corridor Development committee chairman, Datuk Seri Mohammad Nizar Jamaluddin here today.
The investment will boost KYM’s wholly-owned subsidiary, Hasrat Meranti Sdn Bhd production capacity by a further 50 per cent to 230 million paper sacks per annum from the current 150 million.
Hasrat Meranti managing director Mok Tuck Meng said the exports had increased 62 per cent from RM18 million in 2017 to RM29 million this year.
“With the enhanced capability to deliver top quality products and our collaboration with a Swedish company, BillerudKornas AB, we will able to increase our exports and penetrate new markets.
“The company’s exports have registered a double-digit growth in revenue year-on-year and a compounded annual growth rate of 13.3 per cent for the past 10 years,” he said in his speech.
Also present were KYM chairman Datuk Seri Dr Isahak Yeop Mohamad Shah, KYM chief executive officer Lim Tze Thean, KYM non-independent non-executive director Darren Lee, BillerudKorsnas senior vice-president (packaging paper) Johan Nellbeck; and Embassy of Sweden’s Counsellor, Ola Pihlblad.
About 35 per cent of the company’s industrial sacks are exported to Thailand, Indonesia, Vietnam, Philippines, Brunei, Hong Kong, India and Mauritius.
Hasrat Meranti currently supplies a minimum of 80 million industrial paper sacks per annum for BillerudKorsnas for supply throughout Asian countries. The two companies are also collaborating in a technical joint venture for bags innovation, capacity and marketing cooperation for cement and non-cement products.
In Malaysia, Hasrat Meranti is the dominant player in the supply of cement packaging bags, commanding a 40 per cent market share in the peninsula.
Mok said Hasrat Meranti was 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.
Meanwhile, Mohammad Nizar said besides providing job opportunity for the local people, he believed that the company would act as a magnet to attract more investors to invest in the state.