PETALING JAYA: Producer of automotive parts and components EP Manufacturing Bhd
(EPMB) is proposing to diversify its business to include vehicle assembly.
In a filing with Bursa Malaysia, EPMB said it has only one reportable business segment, being the automotive business segment.
“EPMB intends to strengthen its existing automotive business, as it expects its existing automotive business to remain as a significant contributor to total revenue moving forward.”
By venturing into the vehicles assembly business, EPMB said it would be able to expand its participation in the wider automotive industry upstream supply chain.
“Given that EPMB group is already involved in the manufacturing of automotive parts and components, it would be able to vertically integrate the vehicles assembly business into its existing supply chain.
“It will leverage on its existing technical know-how and knowledge in running its day-to-day operations and apply them to the vehicles assembly business.
“As such, the proposed diversification will allow the group to create an additional revenue stream to complement its existing automotive business, which is expected to contribute positively to EPMB group’s financial results,” it said.
It will also ensure growth and sustainability of the group, while reducing its dependency on its existing automotive business, moving forward, according to EPMB.
