Johor Baru: century bond Bhd is investing in a second production line to produce stretch-packed films using machines in the US.
Allan Tan Siew Kim, general manager, said the new machine will arrive on next February and will be fully operational in two months.
He said that the second production line will increase the production capacity of century bond stretch film by 1,000 tons per month from the current 300 tons.
Two years ago, Tan said, the company ventured to make stretch films with an investment of 3 yuan.
3mil produces stretch films in hand rolls and giant sizes.
\"At present, the product is for domestic consumption.
We are looking at the export market due to overproduction, \"he told StarBiz last Friday after the company\'s annual general meeting.
Tan said the company began exporting the product \"on time\" two years ago, but will now export all additional monthly production of 1,000 tons to Australia and Europe, Japan and the United States.
Tan said that since local consumption has reached a plateau where there is less export activity, it is crucial for the company to export its products.
\"This is related to the transfer of manufacturers from Malaysia to other countries in the region, especially China and Vietnam,\" he said . \".
Stretch Film is usually used to package products such as household appliances, furniture, food and beverage and tableware to prevent them from tumbling or scratching during transportation.
Tan said the company\'s Vietnamese plant in Ho Chi Minh City will begin operations by the end of this year.
The factory will initially produce sealing tapes for the domestic market there and will later expand to other packaging materials, he said.
Tan said the company is also considering expanding to Indonesia as its economic performance improves.
\"We are closely monitoring Indonesia and we will enter the woven bag market if we set up business there,\" Tan added . \".
For the fiscal year ended March 31, 2006, Century bonds
Tax profit of Rm11.
76mil with an income of rm147. 6mil.
In contrast, pre-
The tax profit and income are 14 yuan. 2mil and RM140.
52 mils a year ago. CENBOND : [Stock Watch][News]