ASIA POLY Industrial Sdn Bhd (API), a leading manufacturer of cell cast acrylic sheets, has signed a 3-year supply agreement with Lucite International, the world's leading producer of methacrylates, used as raw material in the manufacture of acrylic-based products.
API chief executive officer Teoh Cheng Chuan said the agreement would have a positive impact on the company's future and growth.
“Our production capacity and sales would increase substantially,” he told reporters after the signing ceremony in Kuala Lumpur.
“The deal allows us to secure raw materials at competitive prices,” said Teoh, adding that the company was expected to increase its raw material consumption from US$5mil a year to US$7mil or US$8mil a year.
Besides access to raw materials, the agreement incorporated a joint technology and new product development programme; as well as opportunities for expansion into China, India and other countries.
“An area of collaboration is the manufacturing of embedment, made from clear cast acrylic,” said Teoh, adding that the local gifts and souvenirs markets were not fully tapped. Acrylic sheet was commonly used for signages such as corporate logos, advertising signs, point of purchase, billboards and displays connected to advertising.
“We see vast potential for growth in many areas and with the support and technology transfer from Lucite, Asia Poly could be more efficient in manufacturing,” Teoh said.
Asia Poly is the only company in the world that Lucite has agreed to share its “manufacturing excellence programme”.
Lucite International chief executive officer Scott Davidson said the choice of Asia Poly as its partner was based on the company's good track record and commitment in the business.
Asia Poly commenced operations in 1992 and has production facilities in Klang, Selangor. The company plans to apply for a public listing on the Mesdaq Market by the year-end.
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