OMG Fidelity plans to expand Kuching plant

Electronic chemicals manufacturer OMG Fidelity (M) Sdn Bhd, which is targeting annual growth in output of between 10% and 15% for the next two years, plans to expand its Sama Jaya Free Industrial Zone plant when full capacity is reached. 

Managing director Sylvester Fong Tshu Kwong said the plant doubled its capacity in the first expansion three years ago, and was now operating at 70% capacity. 

“Production at the Kuching plant is bigger than OMG Fidelity’s main manufacturing facility in Newark, New Jersey in the United States,” he told reporters after a briefing for Sarawak Deputy Chief Minister and Minister for Industrial Development Tan Sri Dr George Chan Hong Nam yesterday. 

OMG Fidelity Malaysia is a wholly-owned subsidiary of US-based OM Group. 

Tan Sri Dr George Chan visiting the OMG Fidelity factory. With him is Sylvetser Fong (right).

Fong said about RM40mil (inclusive of working capital) had been invested in the Kuching operation, which now contributed 55% to OMG Fidelity’s total worldwide market share of about 70%. 

The Kuching plant started operations in 1997 by producing electroless nickel products for memory disk applications. 

These electronic grade specialty chemicals are critical components used in the coating of aluminium memory disks for high technology data storage industry.  

Two other product lines - electroless nickel chemistry for other plating/engineered coating applications, as well as printed circuit chemistry - were added in 2002. 

According to Fong, the company’s revenue had jumped from less than US$10mil in 1997 to nearly US$30mil last year. This is expected to reach some US$32mil this year. 

He said the company started with one customer, Komag Sarawak, but now exports to Singapore, China, Hong Kong, Taiwan, the US and Europe.  

Fong said there were plans to relocate the manufacturing of methane sulfonates and metal concentrates from the Newark plant to Kuching.