Cable maker Hi-Essence boosts investment to RM85m

 

PLASTICS wire and cable manufacturer Hi-Essence Cable Sdn Bhd has increased its investment at the Kertih Plastics Park (KPP) in Terengganu by 70 per cent to RM85 million.

The company had earlier announced an investment of RM50 million at the park.

Hi-Essence Cable managing director Mohamed Nor Abu Bakar said the additional investment was due to the increasing cost and foreign exchange rate in procuring the machine and setting up the facilities.

"We have expanded our product range to be manufactured from the Kertih plant, which will cover all the requirements of the oil and gas industry," he said in a statement yesterday.

"In addition, we will be expanding our laboratory facilities for product-testing and certification. The plant will start production some time in the second quarter of 2009," he said.

Construction work on the factory is near completion and all machine and testing equipment will arrive at the factory by the first quarter of 2009.

"The plant and infrastructure will be financed through internal funds as well as loans from commercial banks," said Mohamed Nor.

Hi-Essence is also working with Petronas Polymer Technology Centre (PPTC) to identify opportunities for development of polymer resins and product applications in wires and cables.

This collaboration will help develop these products locally in the future, as they are currently sourced overseas.

Mohamed Nor said Hi-Essence's projected earnings are expected to be between RM50 million and RM80 million per year.

The KPP, a project under the East Coast Economic Region master plan, is the country's first fully-integrated plastics hub.

It is expected to draw investments of about RM2 billion and create new jobs for about 7,000 people in the manufacturing, support and ancillary services.