SOS to double SEEK output by mid-2024 with $50 million investment Loop Jamaica

The content originally appeared on: Jamaica News Loop News

By mid-year 2024, Stationery and Office Supplies Limited (SOS) is set to increase its SEEK factory output by 100 per cent with the purchase of three advanced machines that will modernise the factory, enhancing speed and efficiency in production.

The $50 million investment will go towards the purchase of three new machines: a ruling machine that will increase its ruling capability fivefold and two book-making units that will staple, fold, cut, and bind exercise books in one pass, tripling the daily output.

“We’re on track to significantly ramp up our production, effectively doubling our current capacity,” said Allan McDaniel, the company’s Managing Director. “The SEEK factory is presently very labour intensive. The new machinery is the new technology that will bring SEEK to the modern era of manufacturing.”

The SEEK factory, which produces exercise books and other stationery items, was acquired by the company in 2018, marking the company’s entry into the business of manufacturing.

McDaniel stated that the new equipment is being sourced from India and will be up and running by July.

Apart from improving production capabilities, it will result in more competitive prices for dealers and customers. The new machinery will complement the existing setup and catalyse the recruitment and training of around 10 new staff members.

“This investment was the obvious choice if we wanted to continue to grow the business,” McDaniel reasoned. “It will allow us to focus on our best-selling products and make sure we always have sufficient quantities of these products in stock at all times. With the purchase, we are also bringing in persons to train our staff on the new machines. This training should take up to a month, but it will definitely provide them with the new skills needed.”

Known for its strategic maneuvers in business, with the anticipated boost in production, SOS intends to gradually venture into new regional territories while expanding in Jamaica.

The Managing Director commented: “We believe that there is still a large market share within Jamaica that we could capture, but the lack of enough products and inventory prevents us from being able to do so. We count on the continued support of our local market and their willingness to purchase a Jamaican-made product and brand that is on par with — if not superior to — imported options.”

Since the acquisition, SOS has increased its sales of SEEK products from $35 million in 2018 to $62 million in 2019. From 2020 through 2022, sales revenue stood at $38.3 million, $48.2 million and $83.3 million respectively. Fiscal year 2023 marks the highest-ever revenues for SEEK at over $100 million, a 24 per cent increase on the previous year.