Scientex inks strategic alliance with Japanese firm to build plant in M’sia

by **Cals** Fri 08 Aug 2014, 17:35

Business & Markets 2014

Written by Surin Murugiah of theedgemalaysia.com

Friday, 08 August 2014 14:03

KUALA LUMPUR (Aug 8): Packaging manufacturer and property developer Scientex Bhd has inked a strategic alliance with Japan’s largest biaxially oriented polypropylene (BOPP) film manufacturer, Futamura Chemical Co., Ltd (FCC) to build a BOPP film manufacturing plant in Malaysia.
In a statement Friday, Scientex said both firms would jointly grow and develop the consumer packaging markets in Japan and Southeast Asia.
It said the companies’ fist initiative under the partnership was to build a new world class BOPP film manufacturing plant incorporating the advance technology to operate at the highest production speed while adhering to stringent Japanese quality standards besides riding on the advantage of lower Southeast Asia manufacturing costs within Malaysia.
“Aside from operational cost and logistics, Malaysia has managed to maintain its position as one of the world’s top manufacturing destination with its stable political, regulatory and financial policies with their investor friendly approach,” said Scientex.
Scientex had earlier this year consolidated all its consumer packaging businesses under one entity, Scientex Great Wall Sdn Bhd (SGW) following the acquisition of Great Wall Plastic Industries Berhad’s (GWPI) PE film (Polyethylene film) business and Seacera Polyfilms Sdn Bhd’s (Seacera) BOPP film business in FY2013 and FY2014 respectively.
SGW is wholly-owned by Scientex Packaging Film Sdn Bhd.
Scientex said the strategic alliance through SGW entitled FCC to purchase up to 20% of the issued and paid-up capital of SGW within the next five years with an initial subscription of 5% of the issued and paid-up capital of SGW.
It said FCC has the right to 30% of the production capacity of the new plant which is approximately 1,500 metric tons per month of BOPP film for sale and distribution in Japan.
“Correspondingly, SGW will assist, develop, market and sell FCC products or products developed using FCC technology to existing and new markets in the Southeast Asia region by tapping into the extensive distribution channels of SGW,” it said.
Scientex was among the top gainers in the morning session on Friday and rose 6.38% or 37 sen to RM6.17 with 865,200 shares done.