This article first appeared in The Edge Financial Daily on August 11, 2017 - August 17, 2017

KUALA LUMPUR: Thermoform food packaging manufacturer SCGM Bhd has allocated RM133 million in capital expenditure costs to build two new factories as part of its expansion plan.

In a statement yesterday, the Johor-based company said the factories are being built in the Klang Valley (operations expected to begin by year end) and Kulai, Johor (construction to be completed by end-2018).

With the two factories fully operational, the company will have a total production capacity of 67.6 million kg per year by the end of the financial year ending April 30, 2019 (FY19), up from its current 36 million kg per year, SCGM added.

“We have been growing consistently over the past three decades, and built a strong reputation for delivering quality food packaging both locally and overseas. Now, we are ready for bigger accomplishments, and have put the necessary plans in place,” said the group’s managing director Datuk Seri Lee Hock Chai.

“To this end, we have allocated RM133 million in capital expenditure for the two new factories over the next two years. This will result in an 88% increase in production capacity by the end of FY19 and help SCGM achieve sustainable growth going forward,” he added.