Oceancash Pacific will double its production capacity for nonwoven materials used in the production of personal protective equipment (PPE). The Malaysian company manufactures and sells air-through bonded nonwoven and thermal bonded nonwoven fabric, which is widely used in disposable hygiene products.

The estimated capital expenditure for the project will be about $10 million  (for land and machinery)  and will be funded through internal funds, placements and bank borrowings. The investment will double Oceancash’s to 16,000 tons per year and will be complete within 18 months.

“We observed that  demand for nonwoven materials has accelerated during this Covid-19 pandemic as nonwoven is a key raw material used in the production of PPE. We believe that this pandemic is an opportune time for such an expansion,” says Oceancash general manager Lor Seng Thee.

“We are confident that this plan will mark a new major milestone for the group with very strong potential to raise the growth trajectory of our earnings,” he adds.

Lor says the new expansion involves a major upgrade in production technology, which will allow the company to make three-ply material for three-ply masks.

“In addition, the nonwoven material from the new plant can be supplied to the disposable hygienic products industry, in which Oceancash already has a steady customer base,” says Lor, adding that the company believes the demand for hygiene products will continue to grow, given the improvement of standard of living as well as the higher hygiene awareness arising from this pandemic.