Business Times,
29 December 2004
Scientex industrial
packaging, polymer units to keep growing
By
Zuraimi Abdullah
SCIENTEX Inc Bhd's industrial packaging and polymer divisions will
continue to grow next year, its managing director Lim Peng Jin said.
The industrial packaging division contributes about 40 per cent of the company's
profit. Its polymer unit, which supports the automotive sector, makes up 15 per
cent.
Scientex's pre-tax profit rose 111.3 per cent to RM8.3 million for the first
quarter ended October 2004, while turnover increased 57.4 per cent to RM112.9
million.
Last year, its revenue grew 36.4 per cent to RM341.2 million from RM250.1
million previously.
Lim expects the industrial packaging division to record better performance,
given improved cost control and sales of stretch film and strapping bands, and
higher margins as a result of better economies of scale.
"Our industrial packaging division, which exports 70 per cent of the output,
will continue growing," he told reporters after Scientex's annual general
meeting in Subang Jaya, Selangor, yesterday.
Lim said Scientex wants to turn its polymer business into a top supplier in Asia
Pacific for the automotive sector.
The division produces and supplies a wide range of polymer-based products, such
as PVC leather and sheet, and skin materials for automotive interiors,
especially for dashboards, door trims and head-lining.
Lim is bullish on prospects for the polymer division as demand for its products
is expected to remain strong.
Scientex's subsidiary, Scientex Polymer Sdn Bhd, bought in April last year the
entire stake in Scientex Polymer (Japan) Co Ltd, giving it immediate control of
a plant in Japan.
The latter specialises in producing carpet mats for motor vehicles. Major
customers include Nissan, Toyota, Daihatsu and Suzuki. It supplied about 250,000
carpet mat sets to clients in Japan last year, representing a 4 per cent market
share.
Scientex has two more carpet mat plants - in Vietnam and Malaysia - supplying to
the likes of Proton Holdings Bhd, Perusahaan Otomobil Kedua Sdn Bhd, Naza Kia
Sdn Bhd, Ford Motor Co, General Motors Corp and Yamaha Corp.
Half of the polymer division's output is exported. Lim said this will increase
to 70 per cent in two years.
Scientex is also bullish on growth prospects for its two other divisions,
property development and chemicals.