ASX-listed Secos Group will be expanding its Malaysian operations by manufacturing and marketing compostable resin for the growing local film and bag market.

Manufacturing of the resin is expected to begin in January 2018, at the company’s production facility at Port Klang near Kuala Lumpur.

The resin will aid Malaysia in providing alternatives to single-use plastic bags.

Secos’ new strategic business unit will be named Cardia Bioplastics (Malaysia) Sdn Bhd, and will operate under the Stellar Films (Malaysia) Sdn Bhd business, which the company acquired in April 2015.

The resin manufacturing facility furthers the strong ‘green initiatives’ set by the Malaysian Government and encourages sustainable manufacturing.

These initiatives have culminated in the Malaysian Government awarding the new strategic business unit with ‘Bionexus’ status.

This recognition bestows fiscal incentives, grants, and other guarantees to assist growth. Only certain qualified companies undertaking value-added biotechnology and/or life sciences activities qualify for Bionexus status.

The business unit will commence operations, having made strong sales of compostable resin (in excess of 35 tonnes) to large-scale bag manufacturers in Malaysia.

These initial sales have followed successful production trials using resin Secos manufactured at its Nanjing, China plant.

Secos MD Stephen Walters said the company is leading the way in bioplastics, and the new plant will work closely with local film and bag producers to produce and market bioplastic resins which suit the needs of the Malaysian bag market.

The Malaysian plastics industry is estimated to be worth more than A$8 billion and is growing at 5-8 per cent per annum, with a large percentage of this growth coming in the bioplastics sector.

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