WONG Engineering Corp Bhd will soon venture into the manufacture of automobile components to tap the vast potential in the industry.
Its executive chairman Freddy Wong Kem Woh said the company was currently in the midst of negotiating with several American-based automobile manufacturers on the matter.
We have yet to finalise the amount to be invested in this new business but production will most likely be partially done in Malaysia and in Thailand as well, he told reporters after the company AGM in Prai yesterday.
Wong said the company had the machinery to manufacture the components, adding that he hoped production could start within the next six months.
He said the move would augur well with global changes following the implementation of Asean Free Trade Area (Afta) as automobile giants such as Toyota and Honda were also keen on shifting their research and development (R&D) centres to this region.
The group will continue to strengthen its core businesses locally and regionally whilst actively seeking investment opportunities and strategic alliances that are synergistic to our core competencies.
The manufacturing segment will continue to grow in revenue and profitability and the assembly of actuators, including the flex hook up module for hard disk drive (HDD), will remain a major contributor this year.
However, there will be increased pressure on prices due to the competitive environment, he added.
The company's current core businesses include producing precision turned component parts, metal stamping and value-added disk drive components for the telecommunications, computer and electronics industries.
For the financial year ended Oct 31, 2002, Wong Engineering Group turned in revenue of RM52.49mil, an increase of 136.7% over RM22.17mil previously.
Profit before tax (PBT) was RM1.36mil with a net profit after tax of RM1mil, a turnaround from a loss of RM1.9mil in the previous year.
Wong attributed the better performance to the manufacturing segment, which registered revenue of RM43.8mil and a PBT of RM1.79mil.
The trading segment also showed a significant improvement in revenue of RM8.69mil for the financial year ended Oct 31, 2002 compared with RM1.98mil in 2001, Wong added.