In a filing with Bursa Malaysia today, it said the Shah Alam Phase 1 Expansion Plan has been completed in December 2018, and the Shah Alam Phase 1 facility has commenced operations in March 2019 to manufacture high viscosity hot melt adhesives.
“For the Shah Alam Phase 2 Expansion Plan, we have installed new production lines since March 2019, and manufacturing operations commenced in the first quarter of 2020 (Q1 2020) to produce a new range of low viscosity hot melt adhesives to provide a wider range of products to our customers,” it said.
As at June 30, 2020, Techbond’s Shah Alam factory complex in Kota Kemuning has six water-based adhesives production lines, five hot melt adhesives production lines and four sealants production lines -- all housed within its integrated manufacturing facilities.
For its Vietnam business, Techbond said it aims to build two new water-based adhesives production lines, beside a new polymerisation plant at its Vietnam Singapore Industrial Park II-A (VSIP2) new manufacturing facilities.
“We have built a new polymerisation plant in VSIP2 and target to commence production of polyvinyl acetate (PVAc) polymer by Q4 2020.
“We also intend to develop and manufacture new types of water-based adhesives by using the PVAc polymer manufactured by our own polymerisation plant in VSIP2 from Q1 2021 onwards,” it said.
Moving forward, it said the COVID-19 pandemic concerns will depress market sentiment and cause cautious consumer behaviour.
“In view of the uncertain market condition ahead, the company will continue to take necessary measures to conserve cash and continue to explore ways to reduce cost to minimise the adverse impact of COVID-19 pandemic,” it added.