DPI Holdings to double aerosol production to 20 million cans

KUALA LUMPUR: Aerosol paints producer, DPI Holdings Bhd targets to double its production capacity to 20 million cans per annum from 9.7 million cans currently with the construction of a new factory adjacent to its existing plant in Johor.

In a statement, DPI Holdings said aside from the new factory, which will have four new fully-automated aerosol filling lines, it would also upgrade the production lines in the existing plant to become fully-automated.

Executive Chairman and Managing Director, Peter Chai @ Choy Mui Seng, said demand for aerosol paints in Asia Pacific countries was expected to increase with rising population, accelerated urbanisation and higher motorisation, indicating a potential uptrend for aerosol paints from the automotive segment.

“With export sales making up only 18.3 per cent of group revenue in the financial year ended May 31, 2018, we need to increase our capability to grow our international sales.

“As our current factory’s capacity is 78 per cent utilised, our plans to double production capacity will enable us to capture the anticipated demand growth in the local and international arenas,” he added.

DPI Holdings is targeting to list on the ACE Market of Bursa Malaysia on Jan 7 next year and its initial public offering (IPO) entails the issuance of 126.5 million new shares at an issue price of 25 sen per share.

It plans to raise RM31.6 million in IPO proceeds, out of which RM23.5 million will be utilised for capital expenditure towards expansion of production capacity, RM3 million for extension of consumer reach through marketing and advertising activities and RM1.3 million for development of new product range. - Bernama