KYM SPENDS RM65m TO MODERNISE TAPAH PLANT

Investment to boost production capacity by 50pc to 230m paper sacks a year

KYM Holdings Bhd, the manufacturer of industrial paper bags and paper egg trays, has invested RM65 million to modernise its plant here, and introduce a state-of-the-art industrial paper sack line.

Its wholly-owned subsidiary Hasrat Meranti Sdn Bhd managing director Mok Tuck Meng said out of the RM65 million, RM20 million would be invested in the plant and RM45 million in machines and equipment.

The investment would boost Hasrat Meranti’s production capacity by 50 per cent to 230 million paper sacks per year from 150 million, he said.

This will help increase its exports to the Asian region.

“Our exports have increased 62 per cent from RM18 million last year to RM29 million this year.

“With the enhanced capability to deliver top-quality products and our collaboration with Swedish company BillerudKornas AB, we will be able to increase our exports and penetrate new markets,” said Mok.

About 35 per cent of the company’s industrial sacks are exported to Thailand, Indonesia, Vietnam, the Philippines, Brunei, Hong Kong, India and Mauritius.

It has registered double-digit growth in export revenue yearon-year and a compounded annual growth rate of 13.3 per cent for the past 10 years.

Hasrat Meranti supplies a minimum of 80 million industrial paper sacks per year for BillerudKorsnäs for distribution throughout Asia.

The two companies are collaborating in a technical joint venture for bags innovation, capacity and marketing cooperation for cement and non-cement products.

In Malaysia, Hasrat Meranti is the dominant player in the supply of cement packaging bags, commanding a 40 per cent market share in the peninsula.

“In line with KYM’s restructuring plan under the leadership of a new dynamic management team, supported by an experienced board, the company will focus on transforming its manufacturing business into an export powerhouse for industrial bags.

“The company’s non-core businesses will be divested,” said Mok.

PIC BY ABDULLAH YUSOF Perak Investment and Corridor Development Committee chairman Datuk Seri Mohammad Nizar Jamaluddin (left) and Hasrat Meranti Sdn Bhd managing director Mok Tuck Meng during a visit to Hasrat Meranti’s manufacturing plant in Tapah, Perak, yesterday.