PETALING JAYA: Thermoform food packaging manufacturer SCGM Bhd has entered into a memorandum of agreement (MoA) to exclusively manufacture degradable packaging for the Indonesian market, with expected sales of US$2.1mil (RM8.5mil) over a two-year period.
SCGM, via its wholly-owned subsidiary Lee Soon Seng Plastic Industries, shall manufacture degradable packaging products for Indonesian distributor PT Harapan Infiniti Mulia (PT Harapan)’s in-house ‘Ecorasa’ brand.
In a press release yesterday, SCGM managing director Datuk Seri Lee Hock Chai said the MoA showcases SCGM’s experience in thermoform packaging and commitment to innovating new products in line with increasing customer demands for socially conscious products.
“We want to be in the forefront of spearheading this change to bring about greater awareness in Malaysia and the region.
“Both SCGM and PT Harapan have collaborated well in the past year to bring the ‘Ecorasa’ degradable packaging into Indonesia.
“This MoA brings us a step further to cement our relationship and make eco-friendly products more accessible into the large market,” he said.
PT Harapan is the exclusive distributor of Ecorasa degradable packaging in Indonesia, which includes thermoform lunchboxes, bowls, plates, trays and other products.
The products are distributed to food and beverage (F&B) traders, resellers and retailers across Indonesia.
SCGM registered a net loss of RM694,000 for the third quarter ended January 31, 2019, due to higher costs and operating expenditure.
This is compared to a net profit of RM5.4mil in the corresponding quarter last year.
The group has proposed third interim single tier dividend of 0.25 sen per ordinary share in respect of the financial year ending April 30, 2019, payable on April 26, 2019 to members registered on April 11 this year.
SCGM closed 6.1% lower at RM1.07, traded on a volume of 1.63 million shares.