Malaysian packaging manufacturer SCGM has announced an investment of MYR 20 million (approximately $4.8 million) to boost its food packaging capacity.
The expansion aims to meet increased demand for food delivery and takeaway packaging, which the company’s sales continue to benefit from amid the Covid-19 environment.
With the investment, SCGM plans to expand its capacity by 6 million kilograms. The capital will be allocated over the next 12 months and will be used to purchase new extrusion and forming machines.
SCGM manufactures plastic packaging containers for food and beverages (F&B) such as fruit, bakery products and takeaway boxes. The company also serves customers in the medical and electronic sectors.
The firm’s F&B packaging segment recorded MYR 52 million ($12.5 million approximate.) in third quarter revenue, representing a 23.2% increase from the prior year. SCGM says the unit largely led to the 21.1% higher group Q3 revenue.
“We are seeing encouraging uptake for our F&B packaging such as bento boxes, bakery trays and other products in the last few quarters, as we meet increasing demand from F&B businesses in line with higher takeaways amid Covid-19,” said Dato’ Sri Lee Hock Chai, SCGM managing director.
He added: “This capacity expansion proves timely for us to capture the rising demand from our customers, and allows us additional capacity to serve even more customers in the domestic and international markets.
“As the largest thermoform F&B packaging provider in Malaysia, we believe we have a competitive edge in sourcing for new clients particularly in the domestic arena, alongside overseas markets such as New Zealand, Australia, Singapore, Philippines and Indonesia.
“Hence, by leveraging on our expanded operating capacity, as well as our extensive distribution network and in-house design capabilities to manufacture innovative products, we are set to continue expanding our clientele going forward.”