China's CSL mulls first overseas plant in Malaysia

KUALA LUMPUR: China Stationery Ltd (CSL), the eighth Chinese company to be listed on Bursa Malaysia, has plans to build its first overseas manufacturing plant in Malaysia.

Its founder and executive chairman Kwan Wing Yin said such a plan will be further deliberated after its listing day, tentatively on Thursday.

"Post-listing, we are hoping to set up a factory here and export our products to the Asean and Middle East markets," he said in an interview here yesterday.

Details such as size of land and investment will be worked out after the initial public offering (IPO) exercise is completed, he said.

CSL will be the biggest Chinese company to go public in Malaysia, with a market capitalisation of RM1.1 billion.

Its listing prospectus willl be launched today and the company is issuing 90 million new shares at 95 sen each, where 60 million will be for the the Malaysian public and 30 million for private placement.

It is also making a restricted offer for sale of a minimum of 133 million shares.

CSL is an integrated plastic stationery company with over 450 types of plastic filing and storage products, marketed in 45 countries to about 350 customers, including distributors, retailers and corporations in China, Asia, Europe and the US.

Its manufacturing plant is located in the Fujian province in China on a 90,000 sq m of land. The plant currently runs at an 80 per cent capacity.

"Bursa Malaysia is well-regulated with strict guidelines and this is good for investors," he said, adding that he is confident the market here will reciprocate well to CSL's business strategy and strong management.

For the financial year ended December 2009, CSL reported a net profit of RM168.5 million against revenue of RM556.3 million.

The company will use 70 per cent of the expected RM85.5 million proceeds from the IPO to purchase machinery for its plant and for research and development. By Roziana Hamsawi