GEORGE TOWN: Thong Guan Industries Bhd is spending between RM30mil and RM40mil this year to expand its stretch film, PVC food wrap and other businesses.
Group managing director Datuk Ang Poon Chuan told StarBiz the expansion would raise the production capacity of the stretch film division to 85,000 tonnes by the end of 2019 from 75,000 in 2017.
“We are also adding two more lines to add two production lines for the PVC food wrap division.
“This will further increase our production capacity by 1,800 tonnes per annum.
“In this aspect, this fulfills the Group’s aspirations to continue growing and eventually become one of the largest PVC food wrap producers in the Asia Pacific,” Ang added.
The group is also working on penetrating into new markets in Latin America, and the US. “There are countries in Latin America who prefer to source stretch film and garbage bags from Asian countries.
“Our traditional markets in Japan, New Zealand, Australia, and Europe are expected to remain stable this year.
“Japan is our strongest market currently, contributing about 25% to the revenue.
“We expect orders from Japan to remain stable to the strength of its currency,” he said.
On the domestic front, the group expects its market share to increase.
“We have penetrated markets to supply premium plastic films such as printed films for automatic packing machines, lamination films, collation shrink films, and stretch hood for the food and building material industries in the country,” he added.
On its joint venture courier bags production business with a Hong Kong-based company in Sungai Petani, Ang said the plant had started operation since early this year.“We expect the business to contribute positively to our 2019 revenue,” he added.