BUKIT TENGAH: Chin Well Holdings Bhd expects its wire-mesh business to boost the group’s performance for the financial year ending June 30, 2018 (FY2018).
Group executive director Tsai Chia-ling (pic) told StarBiz that the orders for wire-mesh would come from a US customer based in Kedah.
“We expect orders from the customer to surpass about 400 tonnes per month, growing gradually from the current quarter.
“The orders which have been coming in steadily during FY2017, but had slowed down when the company was implementing its acquisition exercise.
“Now with the completion of the acquisition, the orders started to pick up again and likely to surpass 400 tonnes a month,” she pointed out.
Tsai added that more resources would be allocated to increase the production capacity for mesh wire products as “the group is expected to increase its production volume due to the rise in mesh wire sales.
“We are confident that the expansion in production will contribute positively to the group’s performance for FY2018.”
The group’s wire-mess products are produced by wholly owned subsidiary, Chin Herr Industries (M) Sdn Bhd in Bukit Tengah.
On the domestic sales of its fastener products, Tsai said despite a slow down in orders from the government sector but the private sector is still buying.
Moving forward, she expected Chin Well to secure more orders with the arrival of about 200 foreign workers this month.
“We certainly look forward to improving our sales and bottomline for FY2018,” Tsai said adding that the global market for industrial fasteners would grow in tandem with the positive outlook of the automotive and manufacturing sectors as well as the overall economy.
The Group also planned to raise the contribution from its do-it-yourself (DIY) fastener segment through the increase of distribution network in Europe and US market.
“As for our fasteners, we expect lesser price war from China.