Central Global to increase tape manufacturing capacity to by 250pc with new machinery
16 Aug 2021
Central Global Bhd (CGB) is nearing completion on the purchase of machinery that will triple the capacity of the company’s manufacturing arm to produce industrial masking tapes.
CGB, a manufacturer of industrial masking tapes and label stocks as well as a general building contractor, stated that with the purchase of the new machinery, the company’s factory in Kuala Muda, Kedah, will be able to produce up to 70 million square metres (sq m) of tapes per year, up from 20 million sq m with the old machinery.
Executive chairman Datuk Faisal Zelman said this is perfect timing for the company as it currently has new potential orders of up to 30 million sq m of masking tape orders from existing customers.
“The new machinery will make us even more productive and efficient while allowing us the capacity to grow the business.
“We are also able to fulfil backlog orders worth RM10.0 million from July and August that had been delayed due to the enhanced movement control order that was extended by two weeks in parts of Kuala Muda to the end of July.
“We were only able to restart operations from 2 August 2021 and only at 60 per cent capacity for employees, but we are pleased to announce that all our employees will be fully vaccinated by 23 August 2021,” he said in a statement today.
The purchase of new machinery for CGB’s factory in Kuala Muda will be partly financed through a private placement exercise of 18 million new shares, which is expected to raise approximately RM26.0 million, including financing for a construction project in Penang.
The production expansion of the manufacturing arm is in conjunction with CGB’s growth initiatives for its construction segment.
The company signed a memorandum of understanding (MoU) in early June with Multi Scopes Engineering Sdn Bhd to form a joint venture to build a RM250.0 million sewage treatment plant in Kwasa Damansara, Selangor.
CGB also bagged an RM101.0 million construction project in April 2021 to upgrade the water supply system in Lahad Datu, Sabah.