Multinational company Silverpack Sdn Bhd. is planning to put up a packaging materials factory in the Philippines in the near term as part of its strategy to expand its footprint in the Asean region.
The company is looking to make an initial investment of P500 million to put up the factory, Silverpack regional sales director Jeffrey Ng said.
The Embassy of Malaysia Trade Office (MATRADE) Manila said Silverpack has a factory in Malaysia and China and is among the top five packaging companies in Malaysia. It manufactures flexible plastic bags, bulked packaging film, vacuum and microwavable plastic bags and printed rolls.
MATRADE Commissioner Nyaee Ayup said Silverpack’s expertise in packaging aims to support a wide range of food industries in the Philippines.
“Instead of setting up their own packaging division, the food manufacturers in the Philippines can focus on their main line of business, if they will tap Silverpack for their packaging needs,” Ayup said.
Ng projects that in two to three years’ time, they will be able to gather enough market share in the Philippines and eventually put up a manufacturing plant here.
“We are expanding because companies are also expanding. When they do well, we will do well as well. Right now, we’re talking to large food manufacturing companies in the Philippines. We will export the product first,” he said.
The company plans to set up an office and warehouse in the Philippines in three to four years’ time, and then put up a manufacturing plant at an initial investment of around P500 million.
“Our plan is to set up manufacturing plants in Asean in 10 years; time. We already have a factory in Malaysia and China. We have sales office in Singapore, Sri Lanka and Thailand. We need to set up sales offices in the entire Southeast Asia,” he added.
Currently, Silverpack has small and medium enterprise (SME) clients in the Philippines. He said the total importation is quite small, amounting to P3 million to P4 million a month. He said conglomerates in the food business have their own packaging plants and they also import products from China.
He said a candy manufacturer spends 10 percent of his total cost in packaging, because candies are individually packed. For high value goods, the manufacturer spends 5 percent to 7 percent of their total cost for packaging alone.
Silverpack’s packaging materials are used by wide range of food industries such as coffee, tea, confectionery, milk products, snacks, biscuits, instant food items, oil, seafood, pet food, sweets, jelly top seal, fruit drinks, personal care series, and moon cakes.
Silverpack joined the World Food Expo (WOFEX) held August 5-8, 2015 at the World Trade Center in Pasay City.