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Scientex invests US$91m to supply plastic films to Japan

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Scientex invests US$91m to supply plastic films to Japan
MALAYSIA –
Scientex Bhd has announced a new investment of US$91.4 million (RM 300 million) over the next three years to supply the Japanese plastic films market by expanding its PE and BOPP film production capacity, as well as entering the cast PP film market with new production lines.

The Malaysian plastics packaging manufacturer says it plans to build a BOPP film manufacturing plant in Pulau Indah, Port Klang, Malaysia, in collaboration with Futamura Chemical Co Ltd, a major Japanese BOPP film producer.

The new project will be run by Scientex’s subsidiary Scientex Great Wall (SGW), which will issue 10 million new shares to finance the project. The partners will inject US$12.1 million (RM 40 million) each in capital to purchase five million shares – the equivalent of 5% equity stake in SGW. According to the cooperation agreement, Futamura is also entitled to purchase up to 20% of the issued shares of SGW over the next five years.

According to Scientex, Japan is a key target market for the new Port Klang plant and its cooperation with Futamura will help ensure the film products manufactured meet Japanese BOPP quality standards.

Scientex says Futamura plans to import 18,000 metric tons per year of BOPP films from SGW, which would account for more than 35% of Japan’s annual import market of 48,000 metric tons.

The project also involves Scientex starting cast PP film production in 2015 with annual capacity of 12,000 tonnes. Scientex’s also will boost its PE film production in Rawang to 48,000 metric tons per year from the current 24,000 by the end of 2014.

The expansion project will be equipped with BOPP production machinery from Japan Steel Works (JSW), two 5-layer cast PP film lines for the production of lamination film and metallizable film from Reifenhauser Group, and PP film production machinery as well as a flexographic printing press from Windmoeller & Holscher (W&H).






PACKAGING BUSINESS INSIGHT ASIA

1 PBIA May2015 web

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