CENBOND ... Dec09

It sees Indonesia as the next economic power house with good business prospects for foreign investors as the country has charted encouraging economic growth despite the global economic recession.

The company would probably expand its business operations in Indonesia when the time was right and opportunities arise but he did not give any time frame for this.

Presently, Century Bond operates in Indonesia via wholly-owned subsidiary PT Prestige Packages Indonesia (PTPPI) which manufactures and markets cement paper bags in Medan.

As an independent cement paper bags maker, PTPPI supplied to mostly medium-sized cement producers.

Indonesia is unlike Malaysia, where cement producers produce cement and buy cement paper bags from independent bag makers. In Indonesia, major cement producers have cement paper bag-making facilities integrated with their operations.

PTPPI was the only independent cement paper bag maker in Sumatra and one of three independent bag makers in Indonesia, with the other two in Jakarta on Java Island. With only three independent cement bag makers in the republic, competition was less intense compared with Malaysia where there were at least 10 independent cement bag makers, he said.

Century Bond is the leading supplier of cement paper bags for cement manufacturers in Malaysia, producing about two millions bags monthly at its Senai plant.

80% market share in Malaysia and major clients include Holcim Cement, Lafarge Malayan Cement, Negri Sembilan Cement, Perak-Hanjoong and YTL Cement.

The company also produces packaging-related products such as paper, paper polymer bags, corrugated board, plastics bags, expanded polyethylene foam, sealing tapes and adhesive items.