Mesdaq-listed HDM-Carlaw Corp Bhd will export to the US, Canada, Europe and the Middle East a new range of automated equipment for the mailing and paper-converting industries in the second half.

Group managing director K.Y. Tong said the equipment was designed to produce mailing envelopes and non-postal packaging materials with security features and hot-melt pressure-sensitive adhesive coating with better bond strength.

“We are in negotiation with some customers in the US and Canada. We expect to sell about RM4mil worth of equipment to them this year,” he told StarBiz.

Tong said the group had previously focused on the Japanese market.

HDM-Carlaw would be taking part in the Drupa Exhibition, the premier print media show in Dusseldorf, Germany, he said.

“The show will enable us to strengthen our footing in Europe and North America. We expect to sell about RM8mil worth of equipment after the exhibition.

“The sales revenue should be reflected in our accounts in early 2009.”

The group, which currently operates from a facility in the old phase of the Prai Industrial Estate, will be moving to a new RM6mil plant in the same estate by July.

On its overseas investments, Tong said the group was planning to build a production facility in Songkhla, Thailand, before year-end.

“The RM4mil Thai facility will manufacture similar equipment for export.

“We want to be there because of the attractive tax breaks from the Board of Investment Thailand. For example, we are getting a seven-year income tax exemption,” he added.