Continental Baking (National) has listed 11 companies who will be showcased in their sponsored programme ‘Bold Ones’ to recognise outstanding new Jamaican manufacturers. Sunday Finance will feature a different company for each of the next several weeks.

TO auto enthusiasts, AMG is an abbreviation for the high-performance division of German luxury carmakers Mercedes Benz.

While there are no curve-laden test tracks or four-wheel speedsters on ramps, the Retirement Crescent headquarters of Jamaican packaging manufacturers AMG does boast some sophisticated machinery designed for maximum output, of cardboard boxes, that is.

Michael Chin and George Hugh saw a market opportunity for the provision of corrugated cardboard packaging for the Jamaican market and established the business, bringing with them prior experience in the garment industry.

They now provide packaging for a wide range of markets. Of particular interest at this time of year are beverage trays that are in great demand for the makers of bottled water and other drinks for cooling off Carnival revellers and patrons of other entertainment events.

AMG’s reach extends into other packaged foods and industrial segments. “The change in regulations now means that there is less dependence on imported packaging,” says Hugh, adding that this spells benefits for the economy. “Not only does it support local enterprise and drive new employment, it also saves on the overall import bill.”

The principals are trying to wring out some savings, particularly on their electricity bills, given that the operation is energy-intensive. Chin says that strategies are being examined that would effect efficiencies in energy consumption. The benefits will be felt over time, especially after the company secures additional operations space in an adjacent property, negotiations for which are proceeding apace.

A cost factor not under their control is raw material. “Our paper costs have been rising almost continually since the end of last year,” Chin says. The situation was exacerbated by the recent earthquake in Chile, a major milling centre for the Americas. “The fallout from the earthquake means that supplies are being sold on shorter terms and thus at higher cost,” he explains. “We expect this situation to continue for a couple months till the other mills get up to speed with the demand.” Paper is also sourced from the US (Georgia) and from Brazil, or wherever high quality can be assured at a reasonable price.

“We have many other day-to-day challenges, but we’re very pleased with the operation overall, and we’re confident of increasing our output significantly over the next two years,” Hugh says. “This is a good business and we have a great team.”

Dynamic, focussed and boasting state-of-the-art equipment, AMG packaging is ready to speed ahead to meet their ambitious goals.