G-COVE on expansion mode in Malaysia


G-COVE Technologies Co Ltd founder and president Eugene Chua.

PETALING JAYA: Shanghai-based G-COVE Technology Group Co Ltd, which specialises in environment-friendly packaging, is set to invest US$25mil to build its first wholly owned factory in Malaysia.

The new facility, expected to be operational by early next year in Selangor, will have an annual production capacity of 9,000 to 10,000 tonnes.

The company’s largest factory in Chengdu has a capacity of around 15,000 tonnes, while a Johor facility has a capacity of 6,000 tonnes.

Unlike its partner factory in Johor, which focuses on industrial packaging, the new Selangor facility will be dedicated to food packaging.

Currently, the company operates 26 factories globally, including six wholly owned facilities in China and 20 partner factories.

The new plant will also involve technology transfer from China, positioning it as a hub not only for the domestic market but also catering to the broader region.

Speaking to StarBiz, founder and president Eugene Chua said the transition from plastic to plant-fibre packaging has seen costs increase by only 20% to 30%, far lower than the fourfold jump when the industry transitioned from polyfoam to pure plastic.

“It is not much now owing to our technology. A few years ago, it was expensive. But now with fully automated machines, we were able to reduce the cost accordingly,” said Chua, who was born in Malaysia but has lived in China for over 20 years.

G-COVE’s automated moulding machines are designed to reduce energy consumption by 40% while boosting production efficiency by 30%, with minimal downtime.

Meanwhile, G-COVE is also committed to establishing a bamboo forest in Sarawak, which will contribute to its raw-material supply chain while also supporting local communities.

“We will use the Orang Asli to plant, giving them additional income. From there, we harvest that bamboo and process it for our fibre pulp,” Chua said, adding that the group also aims to expand in Sarawak with another factory in the future.

In addition to bamboo, Chua highlighted that G-COVE is able to use other local agricultural waste as raw materials.

“For example, in Malaysia, we have palm oil and other resources. We don’t need to rely on bamboo from China. We can use palm oil fibre right here in Malaysia,” he said.

Chua added that the company’s fibre-extraction system allows it to extract fibre from various materials, including durian husks.

“This is important because we are not limiting ourselves to bamboo. By utilising agricultural waste, we can turn it into pulp, which can then be transformed into products, ultimately replacing plastic,” he said.

Chua emphasised the company’s commitment to innovation, driven by a strong belief in science.

“We started with a clear manifesto: discover sustainability, uncover science. Science is the one driving all the innovation. That’s our vision – being better to the environment while striving to eliminate plastic,” he said.

With over 180 patents, including for inventions , software and designs, G-COVE has also secured halal certification for its food packaging products.

Chua pointed out that sustainability is no longer optional.

“By 2050, if we do not act today, the amount of plastic could outweigh the total weight of marine life in the ocean. Malaysian companies must comply with environmental, social and governance standards or risk becoming irrelevant. If Malaysian companies are not doing that, we’re going to be phased out very soon,” he said.

The group is also keen to collaborate with Malaysian companies, offering them access to G-COVE’s raw materials, technology, equipment and logistics.

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