Oceancash Pacific Berhad plans to expand production capacity for nonwoven materials needed to produce Personal Protective Equipment (PPE), such as facial and medical protective masks, medical protective caps and gowns, as well as disposable hygiene products. The expansion will be completed in less than 18 months and increase the capacity by 100 per cent.
The estimated capex for the project will be RM40 million, for land and machinery, and will be generated through fundraising, which will be through internal funds, placements as well as bank borrowings. The expansion is estimated to increase the capacity of Oceancash by 100 per cent to 16000 tonnes per annum, from the existing capacity of 8000 tonnes per annum, with an estimated completion time of less than 18 months.
Oceancash’s general manager Lor Seng Thee remarked, “We observed that the demand for nonwoven materials has accelerated during this Covid-19 pandemic as nonwoven is the key raw material used in the production of PPE. We believe that this pandemic is an opportune time for such an expansion.”
“We are confident that this plan will mark a new major milestone for the group with very strong potential to raise the growth trajectory of our earnings. The new expansion involves a major upgrade in production technology, in which its applications include producing the complete 3-ply material for 3-ply masks. This is opposed to most machines in the industry which are only capable of producing 1-2 out of the 3-ply material needed for the production of 3-ply masks,” Thee said.
“In addition, the nonwoven material from the new plant can be supplied to the disposable hygienic products industry, i e diapers, sanitary pads and surgical apparels, in which Oceancash already has a steady customer base. We believe the demand for hygiene products will continue to grow, given the improvement of standard of living as well as the higher hygiene awareness arising from this pandemic,” added Thee.