Muda Holdings Berhad : New Paper Mill Plant To Boost Capacity By 47.4% - 7/5/2010

♦ We met up with Muda’s management recently. Key takeaways from the
meeting are:
♦ New expansion plan for its Kajang mill. The company is embarking on an expansion of its Kajang paper mill, which will increase capacity by 140,000 tonnes, from 155,000 tonnes currently. Total capex for this new expansion is approximately RM180m, of which RM60m has been spent so far. The management expects the new plant to be fully operational by 4QFY10. The company plans to finance the remaining capex via internallygenerated funds and borrowings. According to industry sources, Malaysia
consumed 1.1m tonnes of medium and test liner paper in 2009, of which 23% was imported from countries like Thailand, Indonesia and Taiwan. The management believes that with the new expansion plan, the company would be able to replace the imports by leveraging on its past track record, expanded capacity, quality of its services and pricing of its products.

Muda Holdings Berhad : New Paper Mill Plant To Boost Capacity By 47.4% - 7/5/2010