SCGM set to begin construction of RM54mil facility

A worker attending the production machine at SCGM plant in Kulaijaya, Jojhor.

KUALA LUMPUR: SCGM Bhd, a thermoform food packaging manufacturer, is set to start building its new RM54mil manufacturing facility in Kulai, Johor.

The facility, spread over 7.8ha, is located about 5km from the company’s existing premises and scheduled for completion in December 2018. 

In a statement on Wednesday, managing director Datuk Seri Lee Hock Chai said the enlarged production floor space and new machinery at the facility, would bump up the group’s extrusion capacity by 73% to 62.6 million kg per year from the current 36.0 million.

“As a major producer of thermoform packaging for food and beverages, SCGM has been among the key beneficiaries of higher demand in the past year with the regulatory ban on polystyrene products in Malaysia. 

“In the near future, we foresee a second wave of uptrend in demand alongside public awareness of food safety and environmental sustainability, not only in the local market but also increasingly in the Asia-Pacific region,” he added.

Lee said he was optimistic that the larger production capacity accorded by the new factory would place SCGM on a steady growth path to meet current and future demand. 

The group has earmarked RM125mil in total capital expenditure for the new factory, encompassing land acquisition, building construction and purchase of new machinery. - Bernama