In Malaysia, Seacera Tiles Bhd has proposed to buy an indirect stake in a plastic film maker for close to RM21 million (€5.7m) cash, according to a report in The Business Times.
The tile maker last Friday proposed to pay RM20.6 million for an 80 per cent stake in Quantum, which owns the second largest of three facilities to make polymer plastic film.
Quantum owns 100 per cent of Sam Long Chemicals Industries, which makes biaxally-oriented polypropylene (BOPP) film used for packaging, such as wrappers for cigarette packs and biscuits, Seacera said in an announcement.
The proposed acquisition will be financed with Seacera's internally generated funds and bank borrowings.
Seacera said that only 500gm of the plastic film is consumed per capita in Malaysia and 240gm in China, compared with 2.3kg in Japan.
"The prospects for BOPP film are positive in view of the expected increase in its use as a flexible packaging material.
"The per capita consumption of BOPP in Malaysia and in the Asia-Pacific region is expected to increase in tandem with GDP (gross domestic product) growth over the next few years," Seacera said.
The company has two competitors, Guolene Plastic Films and Stenta Films.
The company exports about 40 per cent of its products to Singapore, Hong Kong, Taiwan, Myanmar and Vietnam, while the rest is for the domestic market. It expects to increase exports to 70 per cent in the near future.