AMG acquires new space for expansion, storage
Published:Wednesday | November 23, 2011 | 12:00 AM
AMG Packaging and Paper Company is finalising purchase of a new property that will add some 10,000 square feet of warehouse and manufacturing space as it executes plans to expand the business.
"A downpayment has been made on the property and the directors have approved the structural layout for the warehouse," AMG said in a statement to shareholders.
The company said it paid more than US$500,000 (J$43 million) for the space.
General Manager Michael Chin said only that the property was close to the existing plant at Retirement Crescent in Kingston, but did not disclose its location.
Chin said some of the new space would be used for storage and that new equipment would be installed by December to expand AMG's production capacity.
"With more space, we can manufacture more and store more, as spacing is our biggest issue," said Chin.
"We are very excited about our performance ... excited about the new space and equipment, and we anticipate continued positive performance," he said.
The company is in the business of manufacturing corrugated cardboard products. The plant produces 60,000 to 70,000 pieces per day, Chin said.
The six-year-old company, which went public earlier in June, reported 37 per cent improved net profit of J$31 million at yearend August 2011, due to robust sales which grew 33 per cent to J$309 million.
The company said it now has more than 200 clients.
Chin says the expansion allows AMG to further expand its client base.
"With the new equipment, there are so many other product areas that we can go into, so much more that we can do," he said.
"We can't do everything, but there is a diverse range of products that we can go into, such as pizza boxes, white shirt boxes, shrimps and others."