Mah Sing’s plastic business unit has entered into a master cooperation agreement with an Indonesian company PT Gaya Sukses Mandiri Kaseindo to jointly carry out the business relating to manufacturing and trading of plastic pallets, containers and related material handling and storage products in Indonesia.
Under the partnership, the Mah Sing unit will hold a 70% shareholding while PT Gaya will hold 30%. The Joint Venture to expand the Group’s plastic pallet manufacturing operations is strategically aligned with market trends of growing demand for plastic pallets in Indonesia, addresses capacity constraints in the Malaysian facilities to meet rising global demand for plastic pallets.
Mah Sing said the Indonesian plastic pallet market represents a significant growth opportunity for the Group. Currently dominated by traditional wooden pallets, there is a growing trend and increasing demand for environmentally friendly and recyclable alternatives, especially plastic pallets. This shift is in line with global sustainability initiatives and aligns with the preferences of environmentally conscious businesses. By entering the Indonesian market now, it said it can tap into the evolving demand and position ourselves as a leading provider of sustainable pallet solutions.
The plastic manufacturing division’s partners or clients include numerous Fortune 500 clients such as Nestle, Coca-Cola, KFC, DHL, Petronas, Shell, Pfizer, Ajinomoto, Bosch and many more. In addition to outright sales, MSPI has ventured into the
leasing business of plastic pallets, experiencing robust growth and generating recurring income for the Group.
