NEWSROOM

[Borneo Post Online] Daibochi targets higher efficiency through more automation

09 June 2015

KUCHING: Daibochi Plastic and Packaging Industry Berhad (Daibochi) has earmarked RM15 million in capital expenditure (capex) for the financial year ending December 31, 2015 (FY15) to expand its manufacturing operations as noted in its AGM.

Managing director Thomas Lim said that the capex is 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 a 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.

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

Revenue from exports made up 47 per cent of the Group’s sales in the first quarter of 2015, and shows the optimism of growing this further in future by commercializing new products and enlarging the company’s clientele.

“Daibochi places strong emphasis on research and development of innovative packaging solutions, in order to better support our 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 commercialization of more innovative packaging products to support their evolving needs,” concluded Lim.

Daibochi had, in April 2015, commercialized 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.

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News Room [Borneo Post Online] Daibochi targets higher efficiency through more automation