Poly Tower boosts monthly output


  • Business
  • Saturday, 15 Nov 2003

BY HONG BOON HOW IN KLANG

POLY Tower Ventures Bhd, en route for a listing on the KLSE second board, is expecting its monthly plastic bag and film production volume to increase to 2,600 tonnes next year with the acquisition of nine new plastic extrusion machines. 

Poly Tower group managing director C.K. Lew said the company had 57 plastic extrusion machines churning out 2,100 tonnes of plastic bags and films monthly. 

“At present, all our extrusion machines are running at full capacity and we hope the new machines will enable us to increase our production and cater to new businesses,” Lew told reporters at the company's manufacturing facility in Klang yesterday. 

Lew at the new production lines.

Poly Tower's 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 made available for public subscription, 4 million reserved for directors, employees of Poly Tower and its subsidiaries, and 3 million for private placement. 

Lew said the demand for plastic shopping bags in Malaysia and around the world was on the rise due to the growing consumption trend and improving economy. 

“As such, we are anticipating higher demand for our products,” he said, adding that Poly Tower's customers were involved in supermar-kets, hypermarkets, retail chain stores and fast food outlets. 

Its customer list included Tesco, Woolworths, Sainsbury, Greggs, Carrefour, Sogo, Bata, Shoprite, Nike, Laura Ashley, Homebase, KFC, Spar, 7-Eleven and Smorgan Steel. 

About 95% of Poly Tower's products are exported to 16 countries including the US, Britain, Japan, Taiwan, Czech Republic, South Africa, Australia and New Zealand. 

Poly Tower also has the technology to produce bio-degradable plastic bags which could provide new revenue stream for the company. 

Lew declined to comment about the expected performance of the company's shares upon listing, saying the current trend showed that shares of many newly listed companies had commanded good premiums.  

Subscription for Poly Tower shares closes on Nov 21 and the shares will be listed on Dec 17. 

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