Scientex To Invest US$25 Mln In New Stretch Film Plant In The US

KUALA LUMPUR, Nov 11 (Bernama) -- Packaging manufacturer, Scientex Bhd is investing US$25 million (about RM106 million) to open a new stretch film manufacturing plant in Arizona, United States. The company has formed a wholly-owned subsidiary, Scientex Phoenix LLC, to undertake the new venture, targeting the North, Central and South American markets. "The new plant will tap into these huge markets and take advantage of the anticipated ample supply of shale gas-based resin for its raw material. "The plant is Scientex's first stretch film plant overseas, complementing our existing facilities in Pulau Indah, Selangor," Scientex said in a statement Thursday. Targeted for completion at end-2017, the Arizona plant will house two stretch film lines with an annual production capacity of 30,000 tonnes. "This will reinforce Scientex's position among the top stretch film suppliers in the world. "Today, Scientex is the leading supplier of stretch film to Japan. With the new plant, we will bring our proven Japanese quality stretch film to the market, using our expertise in cost-efficient production," Managing Director, Lim Peng Jin said. He said Scientex currently exports some of its stretch film to the US despite the current long lead time and high freight costs. "Setting up a manufacturing base close to customers will enable us to establish a more significant foothold in the US market by catering to their requirements to a greater degree and in a quicker manner," Lim said. "The investment will be financed by internally-generated funds and bank borrowings which will be utilised for acquiring the building facility, machineries and working capital," he added. -- BERNAMA