Big returns from new venture: Poly Tower

  • Business
  • Thursday, 16 Oct 2003

PLASTIC bag manufacturer Poly Tower Ventures Bhd (PTV) expects its recent foray into the manufacture of biodegradable plastic bags and recycled plastic bags to have a significant impact on the company's bottom line in the near future.  

Managing director C.K. Lew said the move into making biodegradable plastic bags and recycled bags was to maintain a competitive edge in the industry in view of the increasing demand for such products in developed countries. 

“It's (demand) definitely going that way (increasing),” he told reporters after the company's underwriting agreement signing ceremony in Kuala Lumpur yesterday in conjunction with its proposed listing on the KLSE second board. 

C.K. Lew (left) exchanging documents with Alliance Merchant Bank senior general manager Mohd Hodori Sarbini. Also present was Datuk Syed Abdul Rahman Syed Abdul Kadir.

PTV has appointed Alliance Merchant Bank as adviser, managing underwriter and placement agent for its planned listing and has made Mayban Securities Sdn Bhd its co-underwriter. 

The listing exercise involves a public issue of 10 million new 50 sen shares and an offer for sale of 2 million 50 sen shares at an issue price of 90 sen per share. 

Of the 10 million shares, 3 million would be available for public subscription, 4 million reserved for directors, employees of PTV and its subsidiaries, and 3 million for private placement.  

Lew said the company's prospectus would be out within a month.  

He said the bulk of the funds raised would be used for working capital and the balance to meet listing expenses.  

PTV is an investment holding company with subsidiaries mainly involved in manufacturing plastic bags, films and related products. 

The company started in 1989 as a family-run business under Klang Hock Plastic (M) Sdn Bhd (KHP). From its inception, the company has been export-oriented. 

“Currently about 95% of our products are exported,” Lew said, adding that the company exported to 16 countries including the US, Britain, Japan, Taiwan, Czech Republic, South Africa, Australia and New Zealand.  

“Our international customers are generally huge supermarkets, retail chain stores, convenience shops and fast-food outlets,” he said.  

He said the listing would help the company gain further recognition to expand its export business. 

Chairman Datuk Syed Abdul Rahman Syed Abdul Kadir said PTV had adopted new technology in the production of biodegradable plastic bags at one of its three factories in Klang, Selangor. 

“The biodegradable plastic bags are made from non-toxic additives,” he said, adding that the company could go into full production of biodegradable plastic bags any time if the demand was there. 

He said to maintain a ready supply of raw materials for its plastic recycling business, PTV had earlier this year acquired Kinsplastic Sdn Bhd.  

For the financial year ended Aug 31, 2003, the group posted revenue of RM85mil and pre-tax profit of RM6.3mil. 

Currently, the company manufactures a wide range of plastic products like shopping bags, garbage disposal bags, degradable bags, construction films and agricultural films. 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Next In Business News

Pharmaniaga appointed sole distributor of Baraka in Malaysia
FBM KLCI likely to trade higher next week
Aramco agrees US$12.4bil deal to sell stake in pipelines
Solar in Malaysia - Challenges, and too much of a good thing?
CPO futures to see volatile trading next week, eyes on MPOB data
Pfizer, BioNTech seek US emergency nod for COVID-19 vaccine in adolescents
Eyes on next generation as Singapore succession is thrown into question
Oil price falls, ends week about 2% lower on supply increase, new lockdowns
BlackRock, Mustier's blank-check firm eye Credit Suisse fund management arm
GLOBAL MARKETS-S&P 500, Dow scale new heights, Treasury yields rise on strong inflation data

Stories You'll Enjoy