Central Global to strengthen loss-making construction unit

KUALA LUMPUR: Central Global Bhd aims to fortify its position as a leading producer of self-adhesive label stocks and tapes.

Executive chairman Datuk Faisal Zelman, who took on the position on Feb 26, said the new board members would focus on growing its construction business, which was loss-making in its financial year ended Dec 31 last year.

“We aim to reinforce our leading position in the self-adhesive label stock and tapes sector. We are formulating new ideas as we see its huge potential.”

Faisal said the company’s manufacturing operations were running at full capacity.

He added that it planned to streamline production operations, buy new machinery, conduct cost-saving initiatives and expand into new markets.

Central Global’s self-adhesive label stocks and tapes are exported to Australia, New Zealand, the United States, China, Thailand, India, Singapore, Indonesia, Vietnam, Brunei, Hong Kong, Japan, South Korea, Taiwan, Sri Lanka and the European Union.

As for Central Global’s construction business, its projects in Penang would last for another two years.

“We are proceeding cautiously as it is a competitive industry but we also see a huge potential in this segment,” said Faisal.

The company’s current construction business order book stands at RM42 million.

“We are working on more deals that will be announced later this year.”

Central Global remains cautious about its outlook for the year due to the Covid-19 pandemic but expects to do better than last year.