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May Plastics accepts offer for two firms
(22/04/99) STS Tecnic to corner market with its special PP bottles (26/06/99) |
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Extracted from the Star Publication, 22nd April 1999
May Plastics Industries Bhd (Mayplas) has accepted a non-entire equity interests in Earnest Equity Development Bhd (EEDB) and Kembangan Alam Bhd (KAB) for a total of RM340mi.
Malaysian International Merchant Bankers Bhd (MIMB) said in a statement on behalf of Mayplas yesterday that the vendors had offered to dispose of the stakes in both companies to a new company, which would assume the listing status of Mayplas on the KLSE 2nd board.
According to MIMB, Mayplas intended to settle the deal via the issuance of 170 million new shares of RM1 each in the new company at RM2 per share on completion. However, the purchase price, as well as the number and price of the new shares to be issued, are subject to variations to be mutually agreed on by the new company, Mayplas and the vendors or as required by the relevant authorities. |
The Star, 26th June 1999
Plastics products and mould manufacturer STS Tecnic Bhd hopes to capture a huge portion of the glass bottle market with its special translucent polypropylene (PP) bottles capable of withstanding hot liquid up to 100 degree Celsius.
Its group general manager Wong Thiam Choy said the company, which had already invested RM4mil to upgrade blowing machines, would start production in August 1999.
Bottles made from polypropylene (PP) will be able to withstand heat up to 100 degree Celsius compared with the widely used bottles made from polyethylene terephthalate (PET), which can only withstanding heat up to 70 degree Celsius, he said.
Wong told Star Business after the company AGM in Bangi yesterday that glass bottles were widely used by the hot-fill industry for storing hot liquid which could not be kept normal plastic bottles.
Wong said although PP had been used to produce plastics capable of withstanding extreme heat, PP bottles made using traditional plastic blowing technology were opaque.
With the new technology, we can manufacture translucent PP bottles and enable users to store ht liquid and see the contents in them, he said. Wong said PP bottles could compete against glass bottles because the PP bottles were cheaper to produce, recyclable and not easily broken. We have already approached several companies in the hot-fill industry and had received favourable responses from them, he said. STS Technic recorded a pre-tax loss of Rm11.1mil on a turnover of RM53.9mil for the year ended Dec 31, 1998. Its managing director Tan Hiok Tong said the loss was attributed to lower sales volumes, thin profit margins, higher provisions for bad debts, interest charges and certain fixed assets which had been written down to recoverable amounts as a result of the economic downturn.
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