Kertih Plastic Park Attracts RM145 Million In Investments

December 02, 2008 15:04 PM

Kertih Plastic Park Attracts RM145 Million In Investments

KERTIH, Dec 2 (Bernama) -- Malaysia's first fully- integrated 140-hectare Kertih Plastic Park (KPP), which was launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi Tuesday, has already attracted RM145 million in investments.

Hi-Essence Cable Sdn Bhd, manufacturer of wire and cable, is investing RM85 million, Latenfield Pipe Industries Sdn Bhd, RM40 million, while FMD Polypipes Industry Sdn Bhd will invest RM20 million to manufacture plastic pipes.

The park, located within the East Coast Economic Region (ECER), aims to promote further downstream investments in the plastics and plastic-related industries by tapping into the potential synergies with the nearby Kertih Integrated Petrochemical Complex (KIPC).

The park expects the industrial lots to be fully taken up by 2015. It also targets to attract RM2 billion worth of investment and creating more than 7,000 jobs.

"This project is in response to the need to enhance the competitiveness of Malaysia's plastics industry. The KPP will provide focused development to cater to the specific needs of the plastics industry," said ECER Development Council chief executive officer, Datuk Jebasingam Issace John Tuesday.

He said Kertih was uniquely positioned to become an important hub for plastics conversion with ready access to raw materials and export routes.

The other plastics parks in the world are Dow Olefinverbund GmbH Value Park in Germany, Jain Plastics Park in India and Abu Dhabi Polymer Park in United Arab Emirates, he said.

"By building this park, we plan to extend the local value chain for the country's petrochemical industry and encourage innovation in end-product plastic manufacturing," he said.

Jebasingam said the KPP would also serve as a haven for developing and enhancing capability in the local plastics industry by providing technical and vocational training to complement the work of the local educational institutions.

Malaysia is already one of the largest plastic producers in Asia with the industry increasingly dominant in Malaysia's export mix.

It registered a growth of 8.3 percent in the first half of this year with a turnover of RM7.96 billion compared with the same period last year.

He said over the last 35 years, Petroliam Nasional Bhd (Petronas) has laid the foundation by developing the oil, gas petrochemical and supporting facilities within the Petronas Petroleum Industry Complex, with investments worth RM70 billion.

"Now it is up to the private sector, especially small and medium enterprises to seize the opportunity to establish their plastics and plastic-related factories in KPP.

"The success of KPP is based on the easy access to feedstock and availability of existing infrastructure and support services in KIPC.

"This access to reliable and just-in-time feedstock supply translates into savings in logistics and warehousing cost," he said.

At the launch, Hi-Essence received its certification as an ECER investor.

The company also exchanged documents with Taiwan Stock Exchange-listed Hua Eng Wire and Cable Ltd for transfer of technology and technical collaboration, as well as with Petronas Polymer Technology Centre for technology collaboration on wire and cable products.

Latenfield Pipes also exchanged documents with Vinyl Chloride (M) Sdn Bhd for the latter to supply modified polyvinyl chloride (MPVC) dry blend compound as well as for technical support on the production and application of MPCV pipes.

Also present at the launching ceremony were Terengganu Menteri Besar Datuk Ahmad Said, the Minister in the Prime Minister's Department Tan Sri Amirsham, Information Minister Datuk Ahmad Shabery Cheek and Petronas president/chief executive officer Tan Sri Mohd Hassan Merican.

-- BERNAMA