Daibochi to establish new manufacturing plant in Malaysia

Daibochi said construction of the new plant, which is in line with the company’s expansion and positive outlook, will enable it to expand its in-house film-making and metallizing operations to meet current and future needs of its clients in various markets including pharmaceutical, food and beverage and fast moving consumer goods.

Daibochi’s managing director Thomas Lim was quoted by Business Times as saying that, "The new plant will provide the group with greater capacity to capture substantial market share in the growing flexible packaging sector in the region."

The amount will be invested over three phases with Phase one to cost RM25m ($8.06m) and will involve the purchase of land, construction of new facilities and the acquisition of machinery and is scheduled for completion in 2013.

Two and three phases include an investment of RM20m ($6.45m) and is expected to be completed over a three year period from 2014 to 2016.

Daibochi said the construction of the new facility is expected to start by the second quarter of 2013.

The investment for the three phases will be funded by a combination of internal funds and bank borrowings.