SUNBIZ

Packaging Firm Invests $1.3m In Machinery

Atlantic & Pacific Packaging Company Limited is investing approximately $1.3 million in machinery which will enhance its presence as a packaging solutions provider. This has been confirmed by Ram Bajekal,
18 Nov 2014 10:36
Packaging Firm Invests $1.3m In Machinery

Atlantic & Pacific Packaging Company Limited is investing approximately $1.3 million in machinery which will enhance its presence as a packaging solutions provider.

This has been confirmed by Ram Bajekal, chief executive of FMF Foods Group, which is the parent company of Atlantic & Pacific Packaging.

Mr Bajekal said the machine will be commissioned latest by mid January.

FMF Group chairman, Hari Punja, said the investment follows the company embarking on projects to manufacture two new products.

This is as a hedge against dependence on a single product.

New are polypropylene bags and extruded plastic packaging products.

Mr Punja has confirmed to shareholders the machinery will be located in an extension to the existing factory building in Walu Bay, Suva.

Mr Bajekal said: “Both these products will not only cater to the domestic market, they will also be exported.”

 

Financials and outlook

Mr Punja said with ongoing improvements in its corrugating and printing processes, they expect the company to be in a much stronger competitive position in 2014-15.

He said the capability to manufacture PP Bags and Extruded Plastics will take it into a new realm of packaging solutions.

“We look forward to the coming year with optimism,” he said.

The year under review also witnessed a marginal drop in revenue compared to the previous one, from $8,034,371 to $7,637,737.

This was caused by a downturn in sales for one of its major customers and also from a temporary slack in the fisheries industry.

Despite the lower sales, the company delivered an improved net profit of $381,257 against $319,216 in 2013.

This was aided by the lower corporate tax rate of 18.5 per cent against 20 per cent the past year.

The company will also continue with phased refurbishment of its corrugation and printing equipment which will sharpen its competitiveness in coming years.

Feedback: rachnal@fijisun.com.fj

 


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