Scientex, Futamura to build film manufacturing plant

PETALING JAYA: Scientex Bhd has entered into a strategic alliance agreement with Futamura Chemical Co Ltd to build a biaxially oriented polypropylene (BOPP) film manufacturing plan as well as to develop and grow the consumer packaging markets.
Futamura, a Japenese corporation that involves in the manufacture of various types of films including polypropylene, linear low density polyethylene, BOPP, cellulose films and non-film based products.
In a filing with Bursa Malaysia, Scientex said the objectives of the strategic alliance was to build a world class BOPP film manufacturing adhering to stringent Japanese standards and quality with lower Southeast Asian manufacturing costs with Malaysia.
It was also to form a partnership alliance to develop and grow the consumer packaging markets in Japan and the Southeast Asia region.
Scientex Packaging Film Sdn Bhd and Futamura will enter into a collaborative alliance through Scientex Great Wall Sdn Bhd (SWG), a unit of Scientex Packaging Film, whereby Futamura is entitled to purchase up to 20% of the issued and paid-up capital of SGW within the next five years with an initial subscription of 5% of the issued and paid-up capital of SGW.
Under the alliance, it said Futamura shall have the right to 30% of the production capacity of the facility of approximately 1,500 metric tons per month of BOPP film for sale and distribution in Japan while SGW to assist and to develop, market and sell Futamura products or products developed using its technology to existing and new markets in the Southeast Asia region by tapping into the extensive distribution channels of SGW.