KUALA LUMPUR: Tien Wah Press Holdings Bhd
is undertaking a A$4.2mil (RM12.9mil) retrenchment exercise at its Sydney-based operation, having transferred its tobacco packaging printing business (using the gavure printing machine) to the group’s Vietnam-based unit.
The company told Bursa Malaysia that Anzpac Services (Australia) Pty Ltd, which is 51% owned by Tien Wah’s subsidiary Max Ease International Ltd, would continue to reorganise and/or undertake cost-cutting programmes, and to expand its non-tobacco clientele under its remaining lithography printing business in order “to return to profitability within a reasonable period of time”.
“The board now considers the retrenchment of the remaining excess staff as the last leg of the transfer of the total gravure printing operation of Anzpac to APT (Alliance Print Technologies Co Ltd in Vietnam),” it said.
APT, effectively a wholly-owned subsidiary of Tien Wah, is currently engaged in printing tobacco packaging and paper services in general.
The cigarette packaging segment accounted for about 85%, or RM312.7mil, of Tien Wah’s revenue of RM367.4mil for the financial year ended Dec 31, 2015.
Tien Wah said the re-organisation of production footprint was part of "normal routine operational function" to improve the group’s strategic positioning to service the customers and reduce operating cost over the longer term.
Following the retrenchment exercise, which is expected to be completed this quarter, Anzpac is forecast to achieve A$0.5mil (RM1.54mil) saving in salaries and wages this year.
“Going forward, annual savings of salaries and wages are estimated to be A$3.1mil (RM9.6mil),” Tien Wah said.
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