AMG reports delay in consumer paper project
AMG Packaging and Paper Company grew revenues to $305 million for the half-year ended February 29, 2016, up marginally from $302 million for the comparative period of 2015.
Profit also grew 64 per cent from $32 million to $52 million, due mainly to lower cost of inventories.
AMG Packaging's projected expansion into the consumer paper market was, however, delayed, the company noted in its financial report to the stock exchange. It now plans to bring the new products to market within the third quarter, General Manager Michael Chin told Wednesday Business.
He said the process of getting regulatory approvals for the material to be used in the production of toilet papers and hands towels, as well as approvals for the packaging of the products, pushed the company beyond its projected time frame to have the products on the market.
"These things take a little time but the papers have been passed now, so everything is ready to go," Chin said.
Distribution arrangements should also be tied up in a matter of days, he said.
The corrugated paper producer initially projected to have the items on the market by the end of last year under a $150-million investment that marks its entry in the