M’sia to remain key to Avery Dennison’s supply chain strategy
KUALA LUMPUR: Global labelling and packaging materials manufacturer, Avery Dennison Materials Sdn Bhd, is optimistic of Malaysia continuing to remain key to its supply chain strategy.
This is given the country’s robust and strong infrastructure, strategic location with access to ports and being a gateway to Southeast Asia and the Asia Pacific region.
Vice- president and general manager ( Label and Graphic Materials Business for South Asia Pacific and Sub Saharan Africa) Anil K Sharma said he was confident that Malaysia had adequate resources and infrastructure to build a supporting ecosystem to sustain the manufacturing industry.
The company recently commissioned a high- speed hot melt adhesive coating line at its manufacturing facility in Bangi, Selangor.
The 1.5 metre line is a ‘first’ for Southeast Asia and will provide a complete portfolio of products to customers in the region, Australia and New Zealand.
Anil said 30 per cent of the production would serve the Malaysian market, and the rest, other Southeast Asian countries, Australia and New Zealand.
The company’s products are used by a wide range of industries, ranging from packaging to advertising and promotions, styling and road safety.
Incorporated in Malaysia in 1997, the company since invested about US$13 million for its project in the country. It serves industries, namely fast-moving consumer goods (FMCG), electronics and durables, pharmaceuticals, logistics, with a fair distribution in the mix.
“Most countries in Southeast Asia are a fairly attractive proposition from a manufacturing perspective. What differentiates Malaysia, in particular, is the stable political regime and business environment.
“In addition, the country’s economic direction in respect of achieving the 2050 National Transformation (TN2050) plan, clearly makes it a compelling vision for additional investments in Malaysia.
“The commitment is also around driving both technology and manufacturing as the key cornerstone to diversifying the Malaysian economy to becoming more broad-based around other platforms,” he told Bernama.
On challenges, Anil said the company does see some softness in the economy in the near term, but its key focus is to help customers to find new opportunities and applications, as well as new markets to work around the challenge.
“We do not take a short-term view. Rather, we look at our business from a mid to long-term perspective, and do see the Southeast Asian region continuing to grow in the next three to four years.
“This is what’s driving our investment decisions. In Malaysia particularly, we are optimistic and expect things to be better towards the later part of the year.
“However we need to ensure our own stability in the next 24 months after the recent investment in the hot melting adhesive line coating facility, before moving on to our next goal,” he added.
Avery Dennison is present in over 50 countries with more than 175 manufacturing and distribution facilities and is headquartered in Glendale, California, the United States.