Kumpulan Perangsang Selangor Berhad is winding up Toyoplas Manufacturing Shanghai since the opening of a new manufacturing facility by its subsidiary Toyoplas Malaysia in Vietnam.
TMS was incorporated in 2002 in PRC with an authorised and paid-up capital of USD5.5 million and was principally involved in the production and sale of precision plastic moulds and precision plastic accessories for electrical appliances. KPS said TMS is not a major subsidiary of KPS Berhad, due to its level of contribution to the profit before tax and total assets employed of KPS Berhad and its subsidiaries.
Considering the larger trade diversion and supply chain diversification strategies within the industry, Toyoplas Malaysia and its subsidiaries intend to consolidate its operations in PRC while expanding its operations outside of PRC together with its key customers which have been growing their presence in Vietnam where the group had recently opened a new factory. The existing plastic injection business and production capacity of TMS will be transferred to TMM Group’s factories in Vietnam and Malaysia while mould fabrication which is an upstream activity shall be consolidated to its remaining factory in PRC located in Dongguan it said.
The voluntary winding-up of TMS is a key component of TMM Group’s effort to streamline its resources and operations, which involves the re-alignment of operational capacities closer to customers and in a more cost-efficient environment.
KPS said there are no expected losses on the voluntary winding-up, and it is not expected to incur any financial nor operational impact therefrom. The completion of the voluntary winding-up proceedings is subject to clearance of the relevant authorities in the PRC.
