KLSE main board listed AKN Technology Bhd, which specialises in metal deposition, metal removal, and reworking for the semiconductor industry, expects its new business ventures to spearhead earnings for the 2004 fiscal year.
Its group executive chairman Datuk Ahmad Kabeer Nagoor told StarBiz that the new business investments should contribute between 40% and 50% to group earnings.
Since last November, we have acquired JIT Technology (M) Sdn Bhd, which provides cost-reduction solutions and recycling computer components services to multinational corporations in the electronics and electrical industry, and Autoplus International Group Ltd, specialising in contract manufacture of consumer electronics products.
We are in the process of acquiring PSC Technology (M) Sdn Bhd, which also provides cost-saving solutions and recycling computer components services to electronics and electrical manufacturers.
PSC, which operates a wholly-owned subsidiary in Thailand, will enable AKN to provide a more comprehensive reduction programme and solution to its customers throughout Asia Pacific, he said.
Among PSC customers are Komag, Western Digital, Dell (in China), and Fujitsu.
Kabeer expected the acquisition of PSC to be completed next month.
Kabeer said prospects for JIT and PSC looked bright, as the increasing intensity of global competition and the emphasis on environmental friendliness had forced companies to aggressively pursue cost reduction activities, which included recycling and reworking recyclable parts and components.
We are also in the process of acquiring MEMS Technology Sdn Bhd, which manufactures micro-electro-mechanical systems for bio-medical sensors, airbags, hard disk drives, and suspension systems.
The acquisition of MEMS is expected to be completed in the 4th quarter and should contribute positively to the group's income for the 2004 fiscal year, he said.
AKN posted RM178.9mil turnover for the first 9 months of FY 2003.
Our success is due to the large presence we have established in the Asia Pacific, particularly China, where we have strong marketing connections. This means we do not have to depend solely on our customers in the US and Europe for business.
Our business is not only dependent on manufacturing lead frames. We also undertake application system design and develop intellectual properties, he said.
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