EG Industries secures orders worth RM300mil

GEORGE TOWN: EG Industries Bhd has already secured about RM300mil worth of orders for its printed circuit board assembly (PCBA) device used in hard-disk drive (HDD) and box-built consumer electronic products.

Group chief executive officer Alex Kang said that EG Industries secured the orders for its first quarter ending Sept 30, 2014.

He said the hard-disk drive PCBA devices were sold to major producers such as Western Digital, while the PCBA used in consumer electronic products went to Dyson, Oxylane, and OJ Electronics, which were branded consumer electronic products makers based in Europe.

“These products are expected to be delivered by the end of fiscal year 2015’s first quarter,” he said.

Kang said that customers in the United States and Europe were shifting their focus of OEM (original equipment manufacturer) and ODM (original design manufacturers) from China, making South-East Asia their preferred destination.

“Our box-built business serving the consumer electronic product segment, for example, has attracted new European customers.

“Some projects had been successfully launched in recent months, while some projects are still ongoing.

“With the number of clients continuing to expand globally, diversification into new industries and synergy prospects created from strategic investment by Jubilee, a Singaporean plastic injection moulding facility, the future of the company is optimistic,” he said.

According to Kang, the PCBA devices for box-built consumer electronic goods are designed in SunTech@Penang Cybercity in Bayan Baru on the island.

“The products are then manufactured in the two plants in Sungai Petani, Kedah.

“One of the plant specialises in surface mount technology (SMT) work for PCBA products, while the other is involved in plastic injection moulding for box-built products,” he added.

According to Kang, the SMT plant is about 90% utilised, and is in need of expansion.

“We are now looking to acquire a suitable site to expand the SMT activities. Kulim and Batu Kawan are the possible sites we are exploring.

“We plan to implement either a rights issue or new bonds to raise about RM50mil in the 2015 fiscal year for the expansion ,” he said.

For the 2014 fiscal year ended June 30, the group expects to achieve close to RM1bil in sales revenue.

“We are confident of achieving the target because the revenue for the third quarter is already at the RM760mil mark, with a net profit of RM3.3mil,” Kang said.