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KUALA LUMPUR: SCGM Bhd 's wholly-owned subsidiary Lee Soon Seng Plastic Industries has signed a memorandum of agreement with Indonesian distributor PT Harapan Infiniti Mulia for exclusive rights to manufacture degradable packaging for the Indonesian market.

In a stock exchange filing, SCGM said it will manufacture the products for PT Harapan's in-house Ecorasa brand with expected sales of US$2.1mil (about RM8.5mil) over a two-year period.

“The MoA showcases SCGM's experience in thermo-form packaging and commitment to innovating new products in line with increasing customers’ demands for ‘socially conscious’ products. We want to be in the forefront of spearheading this change to bring about greater awareness in Malaysia and the region.

"Both SCGM and PT Harapan have collaborated well in the past year to bring the ‘Ecorasa’ degradable packaging into Indonesia. This MOA brings us a step further to cement our relationship and make eco-friendly products more accessible into the large market," said Datuk Sri Lee Hock Chai, managing director of SCGM.

According to the filing, PT Harapan is the exclusive distributor of Ecorasa degradable packaging in Indonesia, which includes thermo-form lunchboxes, bowls, plates, trays and other products.

PT Harapan will distribute products to food and beverage (F&B) traders, resellers, and retailers across Indonesia.

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