In a move to expand its market in Indonesia, it has set up a plant in Batam with an initial investment of RM6 million.
The building of the plant is a natural step for the company after the Indonesia government implemented a ruling that required products used in infra projects to have 30% local content.
Resintech is a manufacturer of various PVC and polyethylene products.
Indonesia currently contributes about 10% of its total revenue and is expected to increase to 15 in 2011 with the new plant and hopes to increase in two years.
The Batam factory also support rising orders in the region.
For the next six months, it has an order book of RM36.4 million.
As at May 31 2010, its cash and bank balances stood at RM794000 while its bank borrowings amounted to RM32 million. With its shareholders’ funds at RM78 million, it has a comfortable net gearing of 0.4 times.
It also has incorporated a subsidiary in China early 2010 registered capital of RM30 million.
In addition it is also branching out into fastfood franchising.
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