Polyplastic invests RM600m more in Gebeng

The Japanese-owned company wants to quadruple the production of its engineering plastic resins, mainly used in the automotive industry in Asean, China and India


Kuantan: Polyplastics Asia Pacific Sdn Bhd will invest another RM600 million to expand its plant in Gebeng to quadruple the production of its engineering plastic resins.

The company's plant in Gebeng industrial estate near Kuantan produces 33,000 tonnes of the "DURACON" polyoxymethylene annually. The product is mainly used in the automotive industry in Asean, China and India.

Polyplastics Asia Pacific is a wholly-owned subsidiary of Polyplastics Co Ltd of Japan, which had invested RM500 million to open the plant in Gebeng in 2000.

To date, Polyplastics Co has four production bases for polyoxymethylene in Fuji (Japan), Kaohsiung (Taiwan), Nantong (China) and Kuantan, with the combined capacity to produce 200,000 tonnes annually.

The expanded plant in Gebeng will have an annual capacity of 120,000 tonnes, making it the largest polyoxymethylene producer within the group.

It will also help the group increase its total annual production to 290,000 tonnes, which is about one third of the world's demand.

Polyplastics Co executive director Yasutoshi Segizawa said the expansion works would begin next year and the new facility is scheduled to operate in 2014.

"Our plant will use the latest technology to produce low-emission grade product," he told reporters after making a courtesy call on Menteri Besar Datuk Seri Adnan Yaakob at Yayasan Pahang's headquarters yesterday.

Segizawa said the Gebeng plant currently has 250 staff and it would employ another 80 skilled workers.

Meanwhile, Adnan said the additional investment showed that Pahang is an excellent investment destination for foreign companies.

"There are many more investments to come (to Pahang) and all these show that the investors are confident with the government and the political stability in the state," he said.

Adnan later received a courtesy call from WR Grace and Co vice-president Gregory E. Poling.

WR Grace and Co, a global company specialising in chemicals and materials, has agreed to invest another RM23 million at its manufacturing facility in Gebeng, which is operated by subsidiary W.R. Grace Specialty Chemicals (M) Sdn Bhd.