Tien Wah Press (Malaya) (TWPM), a wholly owned subsidiary of Tien Wah Press Holdings (TWPH), is closing down it's printing business in Petaling Jaya. A total of 237 employees are expected to be made redundant.
In the statutory filing with Bursa Malaysia, yesterday, the board of directors of TWPH said the "proposed cessation" is "in line with the group's re-organisation of its production footprint which is part of normal routine operational function to improve the group’s strategic positioning to service the customers and reduce operating cost over the longer term."
Following the cessation of its major customer’s operation in Malaysia and their subsequent shifts in production facilities to Singapore, Korea and Indonesia, the group acknowledged that there is no requirement for duplication of printing base in Malaysia.
Hence, it had initiated transfers of its majority production volumes from TWPM to Vietnam and Indonesia to improve its strategic position to service customers and reduce its long term operating cost.
The board is of the view that the re-organisation of its production footprint which involves the cessation of TWPM’s printing business is therefore timely. They anticipate that upon the proposed cessation, TWPM shall remain as a dormant company.
Based on preliminary review, the estimated proposed cessation cost includes 'employees redundancy and related cost' of RM11,640,000.
Barring any unforeseen circumstances, the closure is expected to be completed by Q4 2017.
Human Resources has contacted Tien Wah Press Holdings for a comment, but has received no response at the time of publication.
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TWPM was incorporated in Malaysia on 20 July 1960. TWPM is principally engaged in rotogravure printing specialising in cigarette cartons and consumer goods packaging, and photolithography printing specialising in cartons, labels packaging and advertising materials.
Just last month (15 June 2017), TWPH also announced the cessation of printing business of Anzpac Services (Australia) with a total of 69 employees made redundant - this is expected to be completed by Q3 2017.
Photo / 123RF
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