According to a report this past week by The Star, Pentailing Jaya, Indonesia, Muda Holdings Bhd, in Pentailing Jaya, a pioneer in producing paper and the paper packaging industry, is embarking on an RM90 million investment plan to produce machine glazed paper widely used for the food packaging sector.

Chairman Tan Sri Lim Guan Teik said the group was now in the first phase, of which RM34 million has been pumped in to build a new 100,000-sq-ft outfit to house three new pieces of machinery to make glazed paper.

"We saw the rising demand for glazed paper, particularly to wrap or package food. More so when the food packaging industry is recession-proof, we see the need to expand our product line," he said after the company’s AGM here yesterday, adding that the new plant was located within the vicinity of its Tasek Mill in Simpang Ampat, Penang.

Now on a trial run, Lim expects the outfit to commercially run on July 1. This will be followed by the second phase, which will see completion by July 2016. 

Once all the three machines were fully commissioned, the plant could produce up to 60 tons of glazed paper a year, Lim said, adding that the group hoped to better its margin by 5% to 10% with the new product. About 80% of the stock will be pushed for the export market.