COSMO Scientex (M) Sdn Bhd is looking at an annual revenue of US$15mil (RM57mil) from its urethane prepolymer plant in Port Klang and will increase its capacity by more than 50% in the next three years to meet the growing regional demand.
Mitsui Takeda Chemicals Inc president Koji Yoshida said the current supply for the product in the Asean region was sourced from Japan, Europe and the US.
By setting up the plant in Malaysia, we are confident that we will be in a better position to supply our products to our regional customers, he said at the opening of the Cosmo Scientex's urethane prepolymer plant in Pulau Indah Industrial Park, Port Klang yesterday.
The RM30mil plant is the first-of-its-kind in Asean to produce polyurethane adhesive materials for the flexible food packaging industries.
The plant, which began operations two months ago on a 10,000 sq m site, has the capacity to produce 8,000 tonnes of urethane prepolymer product per year. Its annual production capacity would be gradually increased to 14,000 tonnes by 2006.
Cosmo Scientex is a 70:30 joint-venture company between Mitsui Takeda Chemicals and Scientex Inc Bhd.
Yoshida said Mitsui Takeda Chemicals might consider setting up new petrochemical plants in Malaysia depending on the demand.
At the plant opening ceremony yesterday, Scientex Inc chairman Tan Sri Mohd Sheriff Mohd Kassim said the demand for polyurethane adhesive for flexible packaging was estimated to grow by 7% per annum in the region.
He said that 90% of the plant's output would be exported to Asean countries while the remaining 10% would be sold to domestic customers.
Scientex Inc managing director P.J. Lim said the urethane prepolymer plant was ready to meet the growing competition in supplying polyurethane adhesive for the packaging industries in the region.
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