September 27, 2016, Tuesday
Industrial and Consumer Packaging Products
Scientex Bhd (Scientex) has started to make in-roads into new markets for both its industrial and consumer packaging products based on different marketing strategies adopted for specific markets to boost sales demand.
“The group continues to emphasise on quality products and to this end, the ongoing upgrading of facilities and commissioning of new machinery in its Rawang, Pulau Indah, Ipoh and Melaka plants,” the group said in releasing its results yesterday.
“Further, to remain competitive in the global market place and as part of its on-going efforts to boost (profit) margins, the group has taken pro-active steps to enhance its operational efficiency through its continuous efforts to reduce cost and wastages.”
Additionally, the group’s brand new castpolypropylene (CPP) plant is slowly building up its production capacity to meet the demands of its customers whilst the group’s brand new state-of-the-art multi-million biaxially oriented polypropylene (BOPP) film manufacturing plant at Pulau Indah has started testing and commissioning works since July 2016 with full commissioning and commercial operation slated by the second half of the year.
“The group is confident that given the strategies put in place, demand from both local and overseas for its industrial and consumer packaging products is expected to be positive for the coming financial year as it offers quality products with a wider and diversified product portfolio to its expanded global customer base,” Scientex said.
Moreover for the property division, Scientex believed the group’s performance for the quarter ended July 2016 was focused primarily on affordable homes in Pasir Gudang, Senai and Kulai projects in Johor where demand remained resilient and robust.
For the quarter ended July 2016, Scientex noted the group was on track and launched its latest Pulai land development which was successfully acquired in early 2016.
“The phenomenal demand for its initial two maiden launches under this development has given a strong boost to the group and plans are underway to tap the huge demand for such affordable homes within the vicinity of this region.
“One of its main attraction is the construction of a new link road by the group that has improved connectivity and accessibility to Gelang Patah, Johor. The upcoming completion of the proposed Kangkar Pulai Interchange to the SecondLink has also boosted the viability and location of this development,” the company observed.
Apart from that, the group also seek to address rising constructional costs by incorporating innovative designs, blending with the environment and tapping operational efficiencies to reduce costs and wastage.
Scientex said its township development projects were all well designed to optimise the use of land space through efficient land usage, density and systematic execution of works to boost operational margins and reduce financing costs through better cash flow management and timing of its launches.
The company noted the group is making preparations for the launch of its two pieces of lands in Ipoh of which vacant possession for its Klebang land has been taken over recently and poised to be launched in the first or second quarter of the coming financial year.
The Meru land acquisition is expected to be completed in September with a maiden launch to be held thereafter, further boosting the sales of the group from these new projects over the medium and longer term.
The group foresees the affordable housing segment will continue to play a pivotal role in contributing to the group’s top and bottomline for the coming financial year.