Eng Kah gets 5 new MNC customers


  • Business
  • Tuesday, 24 Jun 2008

It also makes presence in new markets

GEORGE TOWN: Eng Kah Corp Bhd recently secured five new multinational (MNCs) customers from the US and Europe and established a presence in new markets.

Group executive chairman Ewe Eng Kah said the five MNCs had audited and qualified the group as their manufacturer for perfumery, skin care, and cosmetic products.

“We are still in being qualified by a few other MNCs involved in the skincare and perfumery products business,” he told StarBiz.

Ewe Eng Kah

Eng Kah is one of the country's largest makers of personal care products with customers like SC Johnson, Sara Lee and Nutrimetics.

Ewe also said the group had penetrated new markets in Australia, New Zealand, the US, Taiwan and China.

To cater to the new customers, the group would increase production at its new RM10mil facility in Bayan Lepas, which started operations late last year, said Ewe.

“This plant will focus on the production of perfumery, skincare and colour cosmetic products,” he said.

The group operates in four sites, of which two are in Bayan Lepas, Penang, and one each in Shah Alam and Nilai, Negri Sembilan.

Ewe said the group had also recently invested over RM2mil to install SAP enterprise resource planning software and hardware at all it facilities.

“This is to enable our group manage inventory more effectively and handle larger volume of customer orders,” he said.

For the first quarter ended March 31, the group posted RM3.4mil in pre-tax profit on revenue of RM16.7mil, compared with RM3mil and RM14.7mil respectively in the previous corresponding quarter.

A recent Kenanga Research report said Eng Kah's net profit growth for the 2008 fiscal year was likely to be around 10% on strong demand for its products in the second half due to the festive season and MNCs increasing orders.

It also said Eng Kah was expected to show improvement in the 2008 fiscal year and reap full benefits from the Bayan Lepas facility next year.

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