Tapah, Perak, Malaysia 28 August 2018 -- KYM Holdings Berhad (KYM) has invested RM65 million to modernize its Tapah plant and introduce a state-of-the-art industrial paper sack line to increase its exports throughout the Asian region.
The RM20 million investment for the plant, and RM45 million for machines and equipment emphasized the company's commitment to pursue excellence, and to create more sustainable, innovative and quality packaging solutions in a cost-effective manner.
Hasrat Meranti's new plant and state-of-the-art industrial paper sack line in Tapah was officiated by Perak's Committee Chairman for Investment, Industry and Corridor Development, and State Executive Council Member, Dato' Seri Ir. Mohammad Nizar Jamaluddin.
The investment will boost KYM's wholly-owned subsidiary, Hasrat Meranti Sdn Bhd's ("Hasrat Meranti") production capacity by a further 50% to 230 million paper sacks per annum from the current 150 million.
"Our exports have increased 62% from RM18 million in 2017 to RM29 million this year. With the enhanced capability to deliver top quality products, and our collaboration with Swedish company, BillerudKornas AB, we will be able to increase our exports and penetrate new markets," said Hasrat Meranti's Managing Director, Mok Tuck Meng.
About 35% of the company's industrial sacks are exported to Thailand, Indonesia, Vietnam, Philippines, Brunei, Hong Kong, India, and Mauritius. The company's exports have registered a double digit growth in revenue year-on-year and a compounded annual growth rate of 13.3% for the past 10 years.
Hasrat Meranti currently supplies a minimum of 80 million industrial paper sacks per annum for BillerudKorsnäs for supply throughout Asian. The two companies are also collaborating in a technical joint venture for bags innovation, capacity and marketing cooperation for cement and non-cement products.
In Malaysia, Hasrat Meranti is the dominant player in the supply of cement packaging bags, commanding a 40% market share in the Peninsular.
Mok also said, "Hasrat Meranti is committed to build a more sustainable business environment. In addition to introducing the most advanced manufacturing technology from Germany, we will continuously focus on upskilling our people and implement more socially responsible measures such as waste reduction and create a cleaner, healthier environment for everyone."
Hasrat Meranti and other manufacturing divisions contribute about 80% to KYM's revenue. The remaining 20% comes from KYM's corrugated carton boxes segment.
In line with KYM's restructuring plan under the leadership of a new dynamic management team, supported by an experienced board, the company will focus on transforming its manufacturing business into an export powerhouse for industrial bags. Non-core businesses will be divested.