GEORGE TOWN: RGT Bhd is spending RM100mil to expand its manufacturing facilities and machinery as well as purchase new companies for its automation segment this year.
Group chief executive officer Datuk S.H. Lim said the group had expanded the production floor of the hygiene care and automation segments.
“The extended production with its new manufacturing facilities is now awaiting qualification from customers. The lines should commence production before the end of 2022,” he told StarBiz.
The group’s hygiene care business generates 90% of its revenue, while the automation segment contributes the remaining 10%.
“The hygiene care revenue contribution should adjust to 70% while that of the automation segment to 30% by 2025.
“The hygiene care revenue will continue to rise, but the quantum of revenue contribution increase from the automation segment will be higher,” he said.
The group’s hygiene care production floor is now 80,000 sq ft after the expansion, compared to 30,000 sq ft.
In addition to the extended production floor, there are a new warehouse and additional floor space to accommodate the plastic injection moulding machine and offices.
“For the hygiene care division, the washroom dispenser manufacturing has the most substantial growth potential. There are many big players in the United States and Europe with global presence.
“Currently, we have in the pipeline new US customers involved in the hygiene care business, who are bigger than Rubbermaid, a major customer of the group,” he said.
RGT’s extended production floor built-up is now 52,000 sq ft, after the group extended it by 32,000 sq ft.
The built-up area is now three times larger than the previous factory.
“With this additional capacity, we will be able to cater for the other customers in Batu Kawan Industrial Park, Kulim and Penang Science Park.
“Currently, there are new factories in Penang requiring automation and precision parts and components.
“The new notable larger customers in Penang include Intel, Lam Research, Micron, Dexcom, VAT, AT&S, Flextronics, Jabil, Bosch and Boston Scientific. We have already started to supply to some of these multinationals.
The global personal hygiene market is expected to exhibit a compounded annual growth rate (CAGR) of 3.5% from 2022 to 2027, according to renowned market research house IMARC.
“Innovative and natural ingredient-based personal care products for both men and women that are chemical-free and environment-friendly are driving the global personal hygiene market.
“The outbreak of the Covid-19 pandemic has further led to the widespread adoption of personal hygiene products to prevent and minimise the spread of the coronavirus, thereby contributing to the market growth,” the IMARC report said.
According to a Research and Markets report, the global industrial automation market is expected to grow from US$164.74bil (RM732bil) in 2021 to US$178.88bil (RM795bil) in 2022 at a CAGR of 8.6%.