AMG taking steps to enhance its manufacturing process
AMG Packaging and Company Limited is investing in machinery to enhance its manufacturing process, the company indicated in its annual report.
Additionally, AMG Packaging is planning to install prefabricated warehouse at its new location at 12 Retirement Crescent in Kingston. The Kingston and St. Andrew Corporation (KSAC) is reviewing plans for the installation.
In a bid to continually improve its Quality Management System, AMG said it has introduced encrypted cloud storage and is also seeking to procure a pallet wrapping machine.
AMG is also moving to address a problem of uneven floor surface at the front of its existing factory, repaving the area to allow smooth movement of pallets and lift equipment between corrugation and conversion sections.
To improve productivity and efficiency the company is also procuring a Flexo Folder Gluer (a single machine to convert a sheet into a finished product in one pass).
Company Chairman Peter Chin noted in his comments that the financial year 2018-19 was a recovery year for AMG Packaging.
In the previous financial year, the company exited the unprofitable toilet paper manufacturing business, which resulted in it moving from a total comprehensive loss of $29.9 million to a total comprehensive income of $59.1 million.
He commented, “in essence, AMG has gone back to its core business, the manufacturing of corrugated boxes.”
He said the acquisition of the property at 12 Retirement Crescent will allow AMG to expand operations and to better serve customers.
The company obtained funding from Proven Wealth Limited to assist with the development. The KSAC is in the process of reviewing the architectural drawings and the company has begun looking at new equipment.
Results for the financial year ending August 31, 2019, show a six per cent increase in revenues moving from $718.9 million in 2018 to $762.3 million in 2019.
Total manufacturing costs increased 6 per cent, moving from $567.9 million to $606.3 million, while gross profit increased from $151.0 million in 2018 to $156.0 million in 2019.
Directors noted that with paper prices on the world market, having stabilized towards the end of the financial year – is expected to continue through the New Year.
This should impact operations positively, the company said.