18 March 2021
SECOS launches new biopolymer plant in Malaysia
- SECOS is continuing to see strong growth in demand across its range of bio-based compostable products, driven by the global trend of consumers, regulators and brands to replace single use plastics.
- Recent new demand includes an increase of 30% (to 5 million AUD p.a.) in the minimum annual offtake with Jewett-Cameron (announced in August 2020) for compostable pet waste bags for the US market.
- To accommodate growing demand, SECOS has committed to an expansion of its bio-polymer resin product production in Malaysia by 200% from 1800 to 5400 tonnes p.a.
- This increase in capacity follows the expansion of its Nanjing, China facility in December 2020 which increased output by over 100% to 2040 tonnes p.a.
- SECOS has also signed a lease on a new site in Malaysia to house the new bio-based manufacturing facility and has allocated a 2 million AUD capital investment budget for the total expansion in Malaysia.
- The combined expansion of the China and Malaysian facilities will allow SECOS to increase certified compostable product sales to new and existing customers by over 25 million AUD p.a.