Scientex earmarks RM120m capex in FY14

Scientex earmarks RM120m capex in FY14
Business & Markets 2013
Written by Jonathan Gan of theedgemalaysia.com
Tuesday, 17 December 2013 19:13

KLANG (Dec 17): Scientex Bhd has earmarked a capital expenditure (capex) of RM120 million in current financial year ending July 31, 2014.

Managing director Lim Peng Jin said the capex will finance the packaging product manufacturer and property developer's operations.

Lim told reporters after Scientex's shareholders meeting today that that "an investment of RM50 million was made to Great Wall Plastic Industries Bhd to expand their production capacities.

"The company is also in the midst of completing the RM40 million acquisition of Seacera Polymer Sdn Bhd," Lim said.

Lim expects the acquisition to be completed in two to three months.

He said the acquisition will expand Scientex’s production lines to 16 from 13 and move the company to be among the top three stretch film producers in the world.

This purchase of Seacera will raise Scientex’s current production capacity of 154,000 tonnes to 194,000 metric tonnes, according to Lim.

Scientex has allocated the remaining RM30 million to grow its property business.

Johor will be closely watched. Lim said Scientex's newly-acquired 5.6ha (14 acre) land in Kulai will have a gross development value of RM7 billion.

Of the RM7 billion, a total of RM2 billion is already realised, he said.

Lim said Scientex "expects the land bank to be able to cater for their (Scientex) needs over the next 10 years. The company will begin focusing on affordable housing to mitigate the effects of property-cooling measures."