- SECOS Group (SES) is expanding its manufacturing capacity in Malaysia through the lease of a factory close to its existing Port Klang operations
- SECOS is a leading sustainable packaging developer with a head office in Victoria
- The company says it is experiencing strong growth in demand across its range of bio-based compostable products
- Capital investment in the plant is budgeted at around $2 million
- SES, through the expansion, will accommodate rising demand by increasing the annual production of its biopolymer resin product in Malaysia by 200 per cent from 1800 to 5400 tonnes
- The move follows the earlier expansion of SES’s facility in Nanjing, China in December last year
- The combined China and Malaysia expansions will enable increased product sales to new and existing customers by more than $25 million per annum
- SECOS shares are up 7.14 per cent, trading at 30 cents each
SECOS (SES) is expanding its manufacturing capacity in Malaysia through the lease of a factory close to its existing Port Klang operations.
The leading sustainable packaging developer, which has a head office in Victoria, has secured a three-by-two-year lease for the established plant, where it will house a new bio-based manufacturing facility.
SECOS, through the expansion, is aiming to accomodate growing demand for its range of bio-based compostable products; a surge it attributes to the global trend of replacing single-use plastics.
The recent demand includes a 30 per cent increase — to $5 million per annum — in the minimum annual off-take with pet accessory company Jewett-Cameron for compostable pet waste bags for the US market.
A budgeted capital investment of around $2 million in the plant will go towards the purchase and installation of additional resin, new film extruders and bag-making machines.
The investment is poised to increase the plant’s capacity by 200 per cent from 1800 to 5400 tonnes per annum.
The move follows the earlier expansion of SECOS’ facility in Nanjing, China in December last year, which increased annual output by more than 100 per cent to 2040 tonnes.
SECOS CEO Ian Stacey said the manufacturer is excited to deliver phase two of its plans in Malaysia.
“[The expansion] will allow us to meet the rapidly growing demand for our bio based product range and expand our manufacturing capabilities outside of China, while at the same time provide manufacturing redundancies and improve the effectiveness of our supply chain,” he said.
SECOS’ combined China and Malaysia endeavours are set to increase product sales to new and existing customers by more than $25 million per annum.
Bag-making at the new site will ramp up from around May, with expanded bioresin production to commence by October.
SECOS shares have climbed 7.14 per cent, trading at 30 cents at 2:32 pm AEDT.