| Type | Subsidiary (MYX: WWTKH) Bursa Malaysia |
|---|---|
| Industry | Manufacturing |
| Founded | Established in 1991 in Selangor, Malaysia |
| Headquarters | Kota Damansara, Malaysia |
| Area served | Worldwide |
| Key people | Dato’ Tan Kim Hor, Chairman Dato’ Tan Boon Pun, CEO and Dato’ Tan Hoe Pin, Executive Director |
| Products | Disposable Food Packaging Polystyrene Polypropylene Plastic Cutlery High Impact Polystyrene Drinking Straws |
| Revenue | $ 69 million MYR (2009) |
| Employees | approx. 550 |
| Website | www.great-pac.com |
Greatpac Sdn Bhd, an ISO 9001:2008 certified company, is one of the largest and most diverse manufacturers of disposable food packaging products in Malaysia and reputedly, one of the largest in the Asia-Pacific Region.[1]
The company is a wholly owned subsidiary of Wawasan TKH Holdings Berhad[2] whose shares are listed on Bursa Malaysia Securities Berhad (MYX: 8818). All manufacturing operations are based solely in Selangor, Malaysia, with the current Head Office located in Kota Damansara, located just outside Kuala Lumpur. Greatpac has a wholly owned subsidiary regional office in Singapore going by the name of Greatpac (S) Pte Ltd.
Wawasan TKH Holdings Berhad ("WWTKH") was originally incorporated in Malaysia on 23 February 2001 as a public limited company under the name of Greatpac Holdings Berhad ("GHB"). GHB assumed the listing status of Associated Kaolin Industries Berhad on the Second Board of the Kuala Lumpur Stock Exchange on 18 December 2003 and changed its name to Wawasan TKH Holdings Berhad on 17 May 2006.[3]
Contents |
Founded in 1991 as Aneka JASA Sdn Bhd in Sungai Buloh, Selangor, the company began from humble beginnings. The core business centred on polystyrene foam boxes, and the company ran a small operation consisting of 3 polystyrene foam thermoforming machines. The company was then acquired by the Yong brothers, Peter and David Yong.
Over the next few years the company grew, purchasing more thermoforming machines and the first polystyrene foam extruder from Taiwan in 1994. The hunger for expansion grew as the market demand grew for the product range marketed under the brand name of JASA, and the company diversified by the purchase injection moulding machines from New Modern Pte Ltd, commencing the production of cutleries and microwave containers. Aneka JASA Sdn Bhd was then renamed to Greatpac Sdn Bhd.
Greatpac took a massive step forward in 1998 by venturing into the overseas market. Small scale export, consisting of just over one container a month quickly grew over time to progressively become a substantial component of Greatpac’s turnover.
In 2000, the company faced a difficult period as 4 major fires raged through the factory and the warehouse, causing millions of ringgit of damage as stocks and machines were destroyed. The company quickly adapted by fireproofing the factory, upgrading the fire safety systems and shifting the extrusion line to a new facility in Ijok, Selangor.
Business gradually recovered and it necessitated the construction of a 4-storey warehouse. The rapid growth in the local and export markets lead to the acquisition and expansion of new lines, including the purchase of straw and High Impact Polystyrene (HIPS) machines. The year 2002 saw strong growth in the area of exports, and Greatpac received several prestigious international awards in recognition of their achievements.
Based on the success of Greatpac Sdn Bhd, the parent company Greatpac Holdings Bhd received listing status on the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia) on 8 December 2003. Additionally, Greatpac achieved ISO 9001:2000 certification, elevating the company to the heights of international excellence.
The success continued as well as capital expansion, with purchases of additional polystyrene foam extruders from Taiwan, a Grenier Cup Machine from Holland and top of the line Japanese Straw Extrusion machines in 2004. A milestone was achieved when trading began with Makro (now Tesco), Greatpac’s first corporate customer.
The year 2005 was a year of highs and change. Greatpac achieved its highest turnover on record with RM93 million posted in sales revenue. In August 2005, Greatpac Holdings Bhd was acquired by Wawasan TKH Sdn Bhd, who bought a 28.74% controlling share for RM18.45 million.[4] Greatpac Holdings Bhd was re-named to Wawasan TKH Holdings Bhd. In November 2005, office operations including the sales, finance, human resources and administration departments were moved to Jalan Kuching from Sungai Buloh. A new production team assumed the reins at the helm in the final quarter of 2005.
In mid-2006, Greatpac launched the 5S/GK Shop Floor Management Activities Standard Operations based on the Japanese principle of Kaizen to introduce the practice of constant innovation and continuous improvement. With the future in mind, it was determined that the Sungai Buloh factory site was no longer suitable. As a result, two plots of land were acquired in the new Taman Sains Selangor at Kota Damansara in 2006. In November 2006, the first pile was driven into Lot 10, followed closely by piling in Lot 6. Greatpac also purchased top-of-the-line JSW and Toyo injection machines from Japan, which arrived at the end of 2006.
The movement of the Sungai Buloh and the Ijok manufacturing facilities took place in 2007. It started with the movement of thermoforming machines into Lot 10 in March 2010. It was completed by the move of the injection moulding, HIPS, straws and plastic bag operations into Lot 6 in October 2007. Further machines were acquired, including Cheng Mei thermoforming machines which arrived in November and 19 Sumitomo injection machines were installed into Lot 6 in December, ushering in the age of high technology and efficiency. The second large corporate customer, in the French giant, Carrefour Hypermarkets, was acquired in this year as well.
In March 2008, all office operations shifted over from Jalan Kuching to the new head office at Lot 6, which was renamed Wisma TKH, in honour of the chairman of Wawasan TKH Holding Bhd, the venerable Dato’ Tan Kim Hor. The modern age dawned upon the company with the implementation of the ERP system in August, which went live in September 2008.
The year 2009 was a watershed year, with the acquisition of the Giant Hypermarket account, the largest hypermarket chain in Malaysia, and significantly, it was the first time the company acknowledged the need to go Green. Greatpac first experimented with bio-plastic made from corn starch and successfully produced cutlery and plates from PSM raw material in October 2009. Shortly after, Greatpac’s very own eco-friendly brand, JASA Eco™, was conceived.
The year 2010 was an enormously important year for development, innovation and partnerships as the Green initiative generated momentum. In January 2010, the first full production trial for PSM raw material took place. Greatpac became only the second company in the world to have the ability to extrude PSM thermoforming sheet, with the other being Wuhan Huali Environmental Company Ltd, of Wuhan, China the producer of PSM. JASA Eco™ PSM products were launched into the Malaysian market through Carrefour to wide acclaim and praise.
The official launch of JASA Eco™ took place on 27 April 2010, which culminated with the signing ceremony, sealing the strategic partnership between Wuhan Huali and Greatpac Sdn Bhd to continue the development of eco-friendly products. JASA Eco™ products are now marketed through all major hypermarkets, fast food and hotel chains. In September 2010, JASA Eco™ products were exported for the first time to the Reunion Island.
In view of the continually expanding markets, Greatpac has also established a relationship with Cereplast Inc, based in Seymour, Indiana, the United States of America, to jointly develop Cereplast Compostable products, to be marketed under the JASA Eco™ Range. As of October 2010, Greatpac is poised to supply JASA Eco™ products to Wal-mart stores in the United States and as well as many other major supermarkets and corporations worldwide. This is coupled with the launch of the new tag line “Great Life | Green Life” which encompasses the company’s new vision and mission moving forward into the 21st Century.
There are over 300 listed items on the Greatpac stock list under the JASA brand. The two main material concentration are Polystyrene and Polypropylene. Polystyrene foam is manufactured to produce the famous JASA foam take-away boxes, found at the vast majority of mamak stalls in Malaysia as well as plates, trays and bowls. Polystyrene is also used to manufacture a full range of cutlery, clear and coloured, and High-Impact Polystyrene for plates, trays and cups. Polypropylene injection is used to make a full range of clear and coloured containers, both round and rectangular. These are by far the most popular export items due to their high demand especially in the European Market. The operations include straws and plastic bag manufacturing.
The latest range of conventional products offered by the company is their EPS Foam Cup range which was launched in August 2007 to meet market demand. Greatpac traditionally had foam cups as a trading item outsourced from other local manufacturers. Other trading items include bamboo chopsticks and PE Gloves.
In Malaysia today, it is estimated that the market size for disposable food and beverage packaging products has a net worth in excess of RM220 million per annum. Out of this, a large proportion is polystyrene food boxes, in which 12 million pieces are used and discarded on a daily basis. Most of it is taken to landfills or incinerated. In the landfill, the product will not break down and it will still be there hundreds of years from today. When it is incinerated, large amounts of carbon dioxide and other greenhouse gases are emitted, contributing to global warming and climate change.
Keeping in line with these changes, Greatpac has announced the launch of a new range of bio-based and compostable packaging products which was launched on 27 April 2010 under the brand name JASA Eco™.[5] The range comprises plates, bowls, cups, cutlery and carrier bags with more products currently in development.[6] The launch was also done in conjunction with a signing of a Memorandum of Understanding between Greatpac and Wuhan Huali Environmental Technology Ltd, suppliers of the Plastarch Material or PSM.[7] Expressing the intention to move forward pursuing the growing Green market, the company is slowly turning its back to conventional plastic packaging in favour of more sustainable and eco-friendly packaging.
As of October 2010, JASA Eco™ products are available at Tesco, Carrefour[8] and Giant Hypermarket outlets across Malaysia, with Cold Storage, Parkson and Aeon to follow. Kenny Rogers Roasters were the first Malaysian company to purchase JASA Eco™ products for their internal usage in August 2010. The first JASA Eco™ products were exported to the Reunion Island in September 2010.
Recently, JASA Eco™ is also introducing a compostable range of products made from Cereplast Compostable Material, which is poised to be exported to the United States and Australia as early as January 2011.
Greatpac runs one of the most extensive plastic manufacturing operations in the whole of South East Asia.
Greatpac runs in excess of 50 extrusion lines for the polystyrene foam, over 100 injection moulding machines for polypropylene containers, TPS Cups and Cutlery. There are also over 50 Plastic Bag machines in operation.
The upsurge of production had led to the decision to move all manufacturing, including the Head Office, to the site at Kota Damansara in late November 2007. Located just outside the capital of Kuala Lumpur and in close proximity to Port Klang, the new location is to improve the company's logistics dramatically.
In line with the company's mission to "Go Green", the company has reduced 50% of its installed capacity for Polystyrene Foam production in order to concentrate on promoting the JASA Eco™ range of products.
Greatpac is a major player in the export market for disposable food wares, having exported to over 60 countries. Their products and the JASA brand have been internationally recognised and are now part of everyday usage in countries such as the United Kingdom, Australia, France and The Netherlands. It is estimated that 40% of Chinese takeaways in the Netherlands use JASA products. They can also be found in places as far as Mauritius, Malta and American Samoa.
Approximately 80% of the polypropylene containers produced by Greatpac are exported due to the high demand outside Malaysia. The main importers of these containers are European Union customers. Australia and New Zealand however, with its closer proximity to Malaysia, prefers to import the larger sized JASA Lunch boxes and black food trays. Cyprus is a peculiar importer, targeting mostly a special range of champagne coloured range lunch boxes, in addition to cutlery.
The Middle Eastern market is another growing market, with sales done in the United Arab Emirates, Bahrain and Saudi Arabia. The main imports are HDPE Plastic Bag Rolls, HIPS Cups and the EPS Foam Cups in addition to cutlery. The Asian market is one that is largely untapped, mostly due to competition from China, but Greatpac still serves customers in Hong Kong, Japan and Korea mostly importing polypropylene containers.
Greatpac is a major supplier of many organisations throughout Malaysia and the world. Amongst the multi-nationals, the most notable is the British giant Tesco Malaysia, for whom Greatpac manufactures their Tesco Value range of disposable products.
Other notable customers include Carrefour Malaysia, Giant Malaysia, Jusco Malaysia, Kentucky Fried Chicken Malaysia, Pizza Hut Malaysia, The Chicken Rice Shop and the Genting Group.
Greatpac has received a number of awards over their history, with the JASA brand receiving accolades locally and internationally. The most prestigious awards include: