Plastrade seeks to push up exports

  • Business
  • Thursday, 11 Dec 2003

PLASTRADE Technology Bhd (PTB), which is en route to a Mesdaq listing, plans to increase its exports to 30% of total sales over the next five years from the current 10%, mainly to China and Asean countries.  

“The group started to venture into overseas markets to avoid being over dependent on local sales,” PTB said in a statement yesterday. It also exports to the United Arab Emirates and Turkey.  

The bulk of its sale is to such local manufacturers as Olympic Cables Co Sdn Bhd, Universal Cable (M) Bhd and Leader Cable Industry Bhd.  

PTB said by working closely with its customers, it was also indirectly in contact with Tenaga Nasional Bhd and Telekom Bhd, the end users of its products. 

PTB Group is principally involved in the manufacture of plastic resin compounds used in the jacketing and insulation of wires and cables, automotive components parts and pipes, as well as intermediate materials used in the manufacture of plastic resin products. Its products are sold under the brands Plexlene, Plexlon and Prolene

According to a Frost & Sullivan report, PTB Group is one of the top three local manufacturers of plastic resins for the wire, cables and automotive industries last year.  

The group operated four factories in Johor Baru with a total capacity of 1,637 tonnes per month, which should meet the increasing demand for its products, PTB added. 

For the past five financial years ended Dec 31, the PTB Group achieved remarkable revenue and profit growth. 

Revenue grew at an average yearly rate of 104% while profit after tax recorded an average annual growth rate of 406%. For the six-month period ended June 30 this year, PTB Group achieved nearly RM15mil in revenue and RM1.8mil in after tax profit. 

Yesterday, PTB signed an underwriting agreement with Southern Investment Bank Bhd (SIBB) – the group's adviser, sponsor, managing underwriter and placement agent for its flotation exercise. 

The listing involves a public issue of 32.5 million new shares of 10 each at an issue price of 30 sen per share, of which 29.7 million is for placement to selected investors, 1.56 million for the public and 1.26 million for eligible employees and business associates. 

SIBB, as the managing underwriter, would underwrite up to 32.5 million PTB shares. 

PTB expects the public issue to raise RM9.75mil, which would be used for research and development, repayment of trade financing facilities, working capital and for listing expenses. 

The group said it was well positioned to be the market leader in the plastic resins industry in Malaysia, given the strength and experience of its management team.  

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