Scientex launches operations of RM220m BOPP film plant

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KUALA LUMPUR (Sept 29): Packaging manufacturer Scientex Berhad has launched operations of its new RM220 million BOPP film manufacturing plant — the largest such facility in Malaysia — in Pulau Indah, Selangor.

BOPP film forms the protective outer layer of flexible consumer packaging, and is commonly used in the food and beverages industry.

The new plant, with an annual production capacity of 60,000 metric tonnes (MT), was constructed in collaboration with Futamura Chemical Co., Ltd. (Futamura), a plastic films manufacturer and the largest BOPP film manufacturer in Japan.

The plant is equipped with state-of-the-art machinery from Japan Steel Works, Ltd., capable of wider-web and higher-speed film production.

In a statement today, Scientex managing director Lim Peng Jin said the inauguration marked an important milestone for Scientex, as it combines Japan’s technological prowess with Scientex’s manufacturing efficiency, to produce high quality BOPP film for domestic and regional markets in Asia Pacific.

“We look forward to fulfilling anticipated strong market demand, as Malaysia presently imports most of its BOPP requirements, due to a shortage in local supply.

“We also strive to capture new growth opportunities in the regional markets.

“This is certainly a pivotal moment for our consumer packaging business, as we are now one step ahead in realizing our target of becoming a leading single-source provider of international-quality consumer packaging films in the region.”

Futamura holds a 10% shareholding in Scientex Great Wall Sdn Bhd (SGW), the Group’s consumer packaging unit, and would purchase approximately one third of the new plant’s annual BOPP film production.

“We have been aggressively marketing our high-performance BOPP film to several packaging players, both domestically and regionally, and have also conducted product trials with them.

“We are pleased to receive commendable feedback to date, and look forward to commence supply to them in the near term,” Lim said.

At 11.32 a.m., Scientex gained 0.59% or 4 sen to RM6.79, with 236,600 shares done.