NTPM ... May 09

It plans to manufacture stationery from production waste at its facility later this year (2009). The products would include arch files and other office paper. However, the group was not diversifying from its core business.

The yare merely expanding the range of its products from the tissue paper segment. Manufacturing stationery items allows them to tap into its existing paper-making machinery, which is used to make tissue paper.

It will also be able to tap our existing marketing and distribution networks for the stationery products. Since the company would be using its existing facilities to produce the stationery items, the investment would be small.

The group saw potential in recycled products, as consumers realised the need to preserve a green environment. However, does not expect the stationery items to have an impact on the group’s revenue in the next few years. It hopes to grow the stationery business over five years into its third core product line, after tissue and personal-care items.

NTPM had recently bought an RM8mil machine to manufacture its own diapers. At present, it outsources the manufacturing work (for diapers). They have decided to make our own diapers because of the growing demand.

For the nine months ended Jan 31, the group posted after-tax profit of RM31mil on revenue of RM263mil, compared with RM25mil and RM232mil respectively in the previous corresponding period.