AMG Packaging gets green light to construct expanded facility

Business

AMG Packaging gets green light to construct expanded facility

BY DURRANT PATE
Observer business writer

Wednesday, January 15, 2020

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The Kingston and St Andrew Municipal Corporation (KSAMC) has given the green light to AMG Packaging & Paper Company Ltd to build out its recently acquired property at 12 Retirement Crescent, Kingston 5.

The new facility will be an expansion to AMG Packaging's current base located at the adjoining 10 Retirement Crescent. AMG Packaging acquired the property in 2018 when it was the home of Action Chemical and Equipment, a manufacturer of specialty chemicals for more than 20 years.

AMG Packaging Chairman Peter Chin reports that the new property will allow the company to expand its operations and to better serve its customers.

Having secured approval from the municipal authority for the build out of the premises, construction is slated to commence during this month.

The board of AMG Packaging has already identified a contractor to undertake the work and has agreed with the company to undertake the project.

PROJECT FUNDING SECURED

Funding for the project has already been secured from PROVEN Wealth Limited. In a posting to the Jamaica Stock Exchange, AMG Packaging reports that it is still in the process of investigating potential equipment for the new and existing factory that will assist with production speed and factory efficiency.

AMG's decision to acquire the additional property comes months after the company offloaded the loss-making toilet paper business. Since then the company has focused on working to strengthen its core box-making operation.

FINANCIAL PERFORMANCE

In its latest quarterly report for the period ended November 30, 2019 revenues were down 10.4 per cent moving from $213.92 million in 2018 to $191.6 million for the period under review. At the same time gross profit inched up by 3.33 per cent to $49.25 million during the current quarter coming from $47.66 million for the same period in 2018.

Total manufacturing cost for the first quarter ended November 30, 2019 was down 14.38 per cent from $166.25 million in November 2018 to $142.35 million for the period under review. Administrative expenses were down 11.42 per cent while net income for the 12-month period was down 9.7 per cent moving from $16.45 million to $14.48 million

AMG Packaging was incorporated in September 2005, manufacturing cardboard boxes for the manufacturing sector.


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