Malaysian mulls PH packaging plant investment
Multinational firm Silverpack Sdn Bhd. is looking into setting up of a packaging plant with an estimated investment of 500 million two to three years from now as part of its strategy to expand its footprint in the ASEAN region.
Commissioner Nyaee Ayup, commissioner of the Malaysia Trade Office (MATRADE) in Manila said that Silverpack aims to support a wide range of food industries in the Philippines by establishing a packaging facility in the country.
“Instead of setting up their own packaging division, the food manufacturers in the Philippines can focus on their main line of business, if they will tap Silverpack for their packaging needs,” Ayup said.
Silverpack Regional Sales Director Jeffrey Ng said they will initially set up a sales office to build its clientele base and eventually put up a manufacturing plant in two to three years after.
“We are expanding because companies are also expanding. When they do well, we will do well as well. Right now, we’re talking to large food manufacturing companies in the Philippines. We will export product first,” he said.
As they developed good relationship with the clients, they will set up an office and warehouse in the Philippines in three to four years time. Then they will put up a manufacturing plant with estimated investment of 500 million.
“Our plan is to set up manufacturing plants in ASEAN in 10 years time. We already have a factory in Malaysia and China. We have sales office in Singapore, Sri Lanka and Thailand. We need to setup sales office in the entire Southeast Asia,” he added.
Silverpack has a factory in Malaysia and China. It is among the top 5 packaging companies in Malaysia, manufacturing high barrier, laminated in multilayer firm products such as various flexible plastic bags, bulked packaging film, vacuum and microwavable plastic bags and printed rolls.
At present, Silverpack has small and medium enterprise (SME) clients in the Philippines. He said the total importation is quite small, amounting to 3 million to 4 million, a month. Conglomerates in the food business have their own packaging plant and they also import products from China.
Ng said a candy manufacturer spends 10 percent of his total cost in packaging, because candies are individually packed. For high value goods, the manufacturer spends 5 percent to 7 percent of their total cost for packaging alone.
Silverpack's packaging materials are used by wide range of food industries such as coffee, tea, confectionery, milk products, snacks, biscuits, instant food items, oil, seafood, pet food, sweets, jelly top seal, fruit drinks, personal care series, and moon cakes.