Sabrina Gordon, Business Reporter

With one phase of its expansion near completion, box manufacturer AMG Packaging says its main focus now will turn to aggressive marketing to increase orders enabled by a shift in government policy.

AMG has added 10,000 square feet of warehousing capacity and installed new equipment at the Retirement Crescent, Kingston plant.

"With Government stopping imports, the market is large and we are now satisfied that we can produce and give the quality required," said Michael Chin, general manager of AMG Packaging and Paper Company Limited.

"With our increased warehouse space it has freed up space for our sales and marketing team, so we will be putting those people in place to drive the effort," he said.

Within a week, AMG Packaging will finalise the warehouse project, bringing total factory and warehouse space to about 30,000 square feet.

The new space, which AMG said will help expand the company's productive capacity, will be used to house raw material and finished goods.

Chin declined comment on the size of investment in the upgrades, but the company's accounts point to a J$53.6 million "deposit" on plant and equipment.

The GM said the company now produces at least 70,000 units per day and is looking to double that with the installation of new machines.

At its current capacity, AMG reported turnover of J$357 million at year ending August 2012, up from J$309 million the previous year.

Net profit jumped from J$31.3 million to J$47.7 million.

So far, AMG has installed a new two-colour printing machine, rotary die-cut machine and a partition machine, which will allow the company to offer services to companies that package glass products.

The two-colour printing and rotary die-cut machines will allow the company to cut down on production time and processes.

Currently, there are 12 machines being used in the production process and the plant is now 90 per cent mechanised.

AMG Packaging, which has been in the business now for approximately seven years, has grown it customer base to well over 200 since 2007.

AMG, which went public last year July and listed on the JSE Junior Exchange after raising some J$213 million in an initial public offering, says it intends to add more machines to upgrade and further increase production capacity.

"With the volume of business, we are looking to buy other machines, automate our processes more and increase production as well as the accuracy level," said Chin.

"We are currently sourcing additional machines which will increase quality and production - one is a multifunctional machine that will replace older manual ones and an additional rotary die-cut machine," said Chin, in his report appended to AMG's yearend results released this week.

The GM was not willing to divulge details on the investment levels either for the marketing plan or for the acquisition of additional equipment.

In its financial year just ended, the company spent J$1.3 million in advertising and promotion, up from J$725,669 for the previous year.

sabrina.gordon@gleanerjm.com