PACKAGING company TOMYPAK HOLDINGS BHD is targeting to increase the local content in its finished products to at least 60% by 2005 from 50% currently.
Its managing director Chow Yuen Liong said that most of the imported raw materials came from Japan, South Korea and Europe and a small portion from Indonesia, the Philippines and Singapore.
He said among the imported materials used in the company’s products including plastic resin, aluminium foil, polypropylene and polyester films.
Chow told StarBiz after the company EGM on Thursday that to reduce its dependence on raw materials from Japan, South Korea and Europe, the company would source for more raw materials from Asean countries as this could help Tomypak save between 10% and 15% in production costs.
Tomypak produces packaging materials for food and beverage manufacturers whose products include confectionery, snacks, instant noodles, biscuits, beverage in aluminum foil and beverage mix in sachets.
According to Chow, exports to Indonesia, Myanmar, the Philippines, Singapore and Thailand account for almost 30% of the company's total output at present but there are plans to increase this to 40% in two or three years.
“We don’t plan to go to China as the market it is too competitive there. We will focus on developing our markets in Asean,” he said.
At the EGM, shareholders approved the proposed 1-for-1 bonus issue of 19.94 million new shares at RM1 per share and the proposed employees’ share option scheme.
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