Thermo-vacuum form and vacuum plastic packaging specialist SCGM Berhad has announced plans to establish a new plastic cup manufacturing unit in Malaysia.
The move forms a part of the company's strategy to expand its production capacity by 20% for catering to the anticipated increase in consumer demand worldwide.
SCGM will invest around MYR11.6m($3.62m) to purchase equipment and build a new plant in Johor Baru.
The investment will be generated by internally generated funds and borrowings.
Expected to become operational this year, the proposed plant will have a capacity to produce 700 plastic cups per hour.
SCGM chairman and managing director Datuk Seri Lee Hock Seng was quoted by The Sun Daily as saying: "Entering the new market of manufacturing plastic cups not only expands our product range, but also leverages on our existing relationships with customers in the food and beverage industry.
"With our track record for quality and delivery, we have secured orders for more than half of our plastic cup production capacity to date."
The company said that the new capacity expansion will enable it to secure access to other markets, such as Japan and China.
Image: SCGM's proposed plant will have a capacity to produce 700 plastic cups per hour. Photo: courtesy of artur84 / FreeDigitalPhotos.net.