09 June 2015

Farah Adilla

Flexible packaging manufacturer, Daibochi Plastic and Packaging Industry Bhd, has earmarked RM15 million in capital expenditure (capex) for the financial year ending Dec 31, 2015 (FY15) to expand its manufacturing operations.

Its MD Thomas Lim Soo Koon said the capex will be utilised for the acquisition of new machinery for the Group’s manufacturing plant in Ayer Keroh, Melaka.

“We are continuing with our investment strategy of acquiring more automated and efficient machinery to increase our operational efficiency. Our new wider-web and high-speed laminating machine is targeted for operational commencement in July 2015, and would significantly increase our laminating output.

“Additionally, we are acquiring more automated and efficient high-speed printing machine featuring reduced set-up time and start-up material wastage, which is targeted to come on-stream in November 2015,” he said at Daibochi’s AGM in Melaka yesterday.

Lim said the capex is in line with the company’s intention to capture a larger share of regional food and beverage (F&B) and fast moving consumer goods (FMCG) markets.

Daibochi manufactures high-quality laminated flexible packaging for F&B and FMCG products.

Notable clients include major multinational corporations (MNCs) such as Nestlé, Mondelēz International and PepsiCo.

The company is optimistic on growing its exports revenue by commercialising new products and enlarging its clientele.

For the first quarter ended March 31, 2015, Daibochi’s exports revenue made up 47% of the group’s sales.

On the company’s role in innovation, Lim said Daibochi places strong emphasis on research and development of innovative packaging solutions, in order to better support its clients’ ambitious growth plans.

“Our efforts have thus far resulted in tangible results for our clients, such as increased productivity, cost efficiency, and higher-quality packaging with greater visual impact.

“Today, we increasingly support a number of world leading F&B and FMCG brands, particularly for their high-growth Asia Pacific and South East Asia operations. In this regard, we continue to strive for the commercialisation of more innovative packaging products to support their evolving needs,” he said.

Daibochi had, in April 2015, commercialised an in-house developed product for a leading FMCG products manufacturer in Australia.

The group is also undergoing trial production runs with the same MNC for another product innovation, to be used for its F&B products in South East Asia.

Full commercial production is targeted to commence in the third quarter of 2015.