HPI to expand manufacturing capacity in Perak

BATU PAHAT: Corrugated packaging manufacturer HPI Resources Bhd is expanding its manufacturing capacity, having acquired an industrial land with a building in Parit Buntar, Perak, for RM5.2 million.

HPI group managing director Albert Chan Chor Ngiak said it intended to invest an additional RM5 million in machinery and equipment for the new plant for the production of 18,000 tonnes of corrugated boxes per year, and boosting the group’s capacity in Malaysia by about 13% to 156,000 tonnes annually.

“The new facility would enable us to meet the increasing demand for corrugated packaging in the northern region of Malaysia, which is constantly on the rise in tandem with the country’s increased manufacturing activity.

“We anticipate to commence operations of the new facility by the end of this year,” Chan said in a statement yesterday. The industrial land, spanning 20,603 sq m in size, is located within one kilometre from HPI’s existing plant in Parit Buntar.

He added that the acquisition and subsequent capital expenditure would be financed by the group’s internal funds and borrowings.

HPI is an integrated provider of corrugated packaging solutions, with manufacturing plants in Batu Pahat (Johor), Parit Buntar (Perak), Klang (Selangor) and Phnom Penh (Cambodia), as well as a paper mill in Penang.

The group produces a wide range of packaging products, including printed and plain corrugated carton boxes, corrugated paper board and paper pallets. HPI supplies its products to more than 200 customers from various industries, including food and beverage, electrical and electronic, consumer products and edible oil.

“We believe that there is much potential to tap into in the region, given that the corrugated packaging industry plays a supporting role to the growth of the region’s industrialisation.

“To this end, the group is constantly on the lookout to expand our business by acquiring more market share and further developing our customer base in Southast Asia,” Chan said.

This article appeared in The Edge Financial Daily, July 9, 2010.