Thong Guan poised to expand into US market

As the world’s biggest economy, the US is also the biggest user of stretch films. The report said Thong Guan believes the US uses around 1.2 million tonnes of stretch films per annum. In comparison, the group’s annual production of stretch film last year was 78,000 tonnes.

PETALING JAYA: Thong Guan Industries Bhd is exploring an opportunity to set up a joint venture (JV) in the mid-western region of the United States that is intended for the US market.

The board of Thong Guan agreed on a possible expansion into the world’s biggest market for stretch films, said CIMB-CGS in a report. However, the Russia-Ukraine war might cause systemic risks to Thong Guan’s sales demand, input costs and margins, said the report.