Kertih Plastics Park Opens

12/2/2008 — News Release
Malaysia’s first fully integrated plastics park located within the East Coast Economic Region (ECER) is now open for business.
Officiated by Prime Minister Datuk Seri Abdullah Ahmad Badawi, the Kertih Plastics Park (KPP) functions as a hub that supports plastics and plastics-related manufacturing activities and service providers on a 140-hectare land known as Lot Q.
It aims at promoting further downstream investments in the plastics and plastics-related industries by tapping into the potential synergies with the nearby Kertih Integrated Petrochemical Complex (KIPC).
The park has already attracted three investors:  Hi-Essence Cable Sdn Bhd, manufacturer of wire and cable, is investing RM85 million; Latenfield Pipe Industries Sdn Bhd, RM40 million; while FMD Polypipes Industry Sdn Bhd will invest RM20 million to manufacture plastic pipes.
“This project is in response to the need to enhance the competitiveness of Malaysia’s plastics industry. The KPP will provide focused development to cater to the specific needs of the plastics industry,” said Dato’ Jebasingam Issace John, Chief Executive Officer of ECER Development Council (ECERDC).
“As the only location with a major plastics park in this region, Kertih is uniquely positioned to become an important hub for plastics conversion with ready access to raw material and export routes,” he said.
The other plastics parks in the world are Dow Olefinverbund GmbH Value Park in Germany, Jain Plastic Park in India, and Abu Dhabi Polymer Park in United Arab Emirates.
“The KPP reflects ECERDC’s commitment towards diversifying sources of growth and income for the region. It adopts a strategic approach of encouraging investment, focusing on the industrial sector as the main driver for economic development,” said the ECERDC CEO.
“By embarking on this park, we plan to extend the local value chain for the country’s petrochemical industry and encourage innovation in end-product plastic manufacturing.”
“The KPP will also serve as a haven for developing and enhancing capability in the local plastics industry by providing technical and vocational training to complement the work of our local educational institutions.”
Malaysia is already one of the largest plastic producers in the Asian region.
The plastics industry is increasingly dominant in Malaysia’s export mix. It registered a growth of 8.3 per cent in the first half of this year with a turnover of RM7.96 billion compared to the same period in the previous year.
It is targetted that by 2015, the industrial lots in KPP will be fully taken up, attracting RM2 billion worth of investments and creating more than 7,000 jobs.
“Over the last 35 years, PETRONAS has laid the foundation by developing the oil, gas, petrochemical and supporting facilities within the PETRONAS Petroleum Industry Complex (PPIC), with investments worth RM70 billion.  Now, it is up to the private sector, especially SMEs, to seize the opportunity to establish their plastics & palstics-related factories in KPP.”
“The success of the park is based on easy access to feedstock and availability of existing infrastructure and support services in KIPC.   This access to reliable and just-in-time feedstock supply translates into savings in logistics and warehousing costs. The plastics manufacturers’ capital outlay is reduced and they can focus on their core business.”
“To facilitate R&D in the KPP, PETRONAS Polymer Technology Centre will be setting up a world class R&D centre in the park which will provide technical support to KPP tenants.”
At the launch, Hi-Essence Cable received its certification as an ECER investor. The company also exchanged documents with Taiwan Stock Exchange-listed Hua Eng Wire and Cable Ltd for transfer of technology and technical collaboration, as well as with PETRONAS Polymer Technology Centre for technology collaboration on wire and cable products.
Also exchanging documents were Latenfield Pipes Industries Sdn Bhd and Vinyl Chloride (M) Sdn Bhd (VCMSB) for the latter to supply modified polyvinyl chloride (MPVC) dry blend compound as well as for technical support on the production and application of MPVC pipes.
The MPVC compound, the latest product from VCMSB, was also introduced at the KPP launch under the brand name of Polinas DST PP628. The compound is specifically formulated and designed for rigid pipe applications with superior ductility, strength and toughness.
At the launch, a product certification license was also presented by SIRIM QAS International to Bina Plastic Sdn Bhd which manufactured and supplied pipes made from Polinas DST PP628 used to transport water to the KPP.