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Saturday, September 30, 2017

Asia File to spend RM30mil on foodware production

CORPORATE NEWS
Friday, 29 Sep 2017

Lim: We spent about a year to research the demand for disposable foodwares and found the domestic market to be strong.

GEORGE TOWN: Asia File Corp image: https://cdn.thestar.com.my/Themes/img/chart.png Bhd is spending RM30mil to start soon the production of paper and plastic disposable foodware.

Group executive chairman Datuk Lim Soon Huat told StarBiz after an AGM that the group had already acquired a 3,200 sq metre facility at a site in Simpang Ampat for the new business venture.

“We spent about a year to research the demand for disposable foodwares and found the domestic market to be strong.

“We have invested in the raw materials which we were able to purchase at a very good price.

“This will enable us to sell competitively and generate good profits,” Lim said.

He added that the new products would be marketed under the ABBAWARE.

The new business is internally funded, Lim said. “We are looking at launching the products in end of 2017 or in early 2018.

“The products is targeted at the local and overseas markets.

“We expect the new project to contribute positively in the near future, serving as the group’s second core business,” he added.

Lim said that while there was familiarity with the raw materials used in production, the sales and marketing for the products would be a new uncharted area to explore.

On the group’s filing and stationery business, Lim said the domestic sales for the second quarter ending Sept 30 was expected to increase by 8%.

“The UK market is good, while the European market is flat,” Lim said.

According to Lim, although the industry prospect will remain challenging going forward in view of the current market condition, consolidation of the players in the various markets is viewed as a positive development.

“The stability in product pricing will provide good buffer to a certain extent against major fluctuation in foreign exchange rates,” he said.

At the AGM, the group approved a final dividend of 9% to be paid out in October for the 2017 financial year.

For the 2017 fiscal year, the group had respectively paid a first 3% interim dividend of RM5.8mil and second interim dividend of 4% of RM7.8mil in January and May.


Read more at http://www.thestar.com.my/business/business-news/2017/09/29/asia-file-to-spend-rm30mil-on-foodware-production/#yXKrtxE9yWuEHXLy.99

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