San Miguel Packaging Products-Malaysia registered P3.31 billion in revenues for 2005 and contributed 16 percent to SMPP revenues with its full integration to the company. Its operating income stood at P203 million.
With its financial performance, SMPP Malaysia already exceeded expectations assumed in its valuation study when it was considered for acquisition a year ago.
SMPP-Malaysia’s integration into the packaging group allowed SMPP to realize increased synergies with other San Miguel units in the region sourcing their packaging requirements from Malaysia.
Another new product being introduced into the Philippines by SMPP-Malaysia is the radiant barrier or industrial insulation, which is used in the construction business.
San Miguel bought the Malaysian operations from Guolene Packaging Industries Bhd. in January 2005 as part of its strategy to become a major player not only in food and beverage but also in packaging in the Asia-Pacific region.
It seeks to make use of SMPP Malaysia’s technology, especially in flexible packaging, as it targets higher-value and high-tech industries such as electronics, health care and logistics firms in Malaysia and other companies in the region.
SMPP-Malaysia operates four facilities: One for plastic films (San Miguel Plastic Films Sdn. Bhd.); another for flexible packaging, cartons and paperboard (San Miguel Packaging and Printing Sdn. Bhd.); and also for woven products and radiant barrier (San Miguel Woven Products Sdn. Bhd.).