Group chief executive officer SH Lim told StarBiz the group would acquire land in Bukit Minyak for the expansion exercise.
Lim added the group planned to construct the plant in the first quarter of 2020
To date, the group has RM30mil cash in hand, which can be used to fund the group’s new projects.
“We also have available untapped banking facilities of RM10mil that can also be used to finance our activities,” he added.
“The new plant will produce antidote injection devices for a US customer.
“The antidote injection device is to treat allergies.
“We are now working with the customer to design and develop the prototype.
“We are targeting 2021 to start commercial production of the antidote injection device,” he said after an AGM.
Lim said that the US market was the biggest contributor to the group’s revenue.
“The US generates 70%, while Europe contributes another 30%,” he said.
RGT provides original design equipment (ODM) and original equipment (OEM) manufacturing services for customers.”
“We also design the electronic boards that go into the products,” Lim added.
According to Lim, the group is expanding its ODM services that provide its own design for customers’ products, while maintaining its OEM services, which manufacture products based on the design and specifications of its customers. “The goal is to provide value-added services, in the form of product design, to its existing customers and to new markets such as the medical device industry.
“We are leveraging on our research and development capabilities and accumulated technical expertise to collaborate with its customers in the product design and development stage.
“These experiences in product design and development will help the group to expand its ODM business, “ he added.
According to the Technavio’s ‘Global Medical Devices Market 2018-2022’ report, the global medical devices market size will grow by US$119.98bil from 2018 to 2022.
“The increasing market penetration of medical devices in emerging countries is positively impacting the market growth at a 5% compounded annual growth rate (CAGR) during the forecast period.”
According to the report, the therapeutic and surgical devices will continue dominating the market over the next five years, although their market share will contract in the coming years.
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