KUALA LUMPUR: Pecca Group Bhd
expects to continue delivering strong financial performances in the near term.
Chief executive officer Foo Ken Nee said the company will continue to scout around for new growth opportunities through partnerships, for example, in the automotive and the aviation segment.
“Our aim has always been to grow and this remains unchanged. We have aspirations to identify new growth opportunities every single year and yes, we are looking at new record numbers (for this year),” he said at a briefing yesterday.
“This will be driven by both sales in the automotive and aviation sectors. Our aim is to have other new businesses contribute more significantly to the group, moving forward,” Foo added.
The leather seat maker yesterday signed an agreement with Shanghai Launch Automotive Technology Co Ltd to be its sole and exclusive sales and marketing partner and consultant in Malaysia.
The strategic alliance between both parties was formalised through a framework agreement for consultancy services.
This will leverage Pecca’s industry experience and its networks with the major automotive players, the group said.
“This partnership will help us move up the value chain,” Foo said.
“The exclusive partnership with Shanghai Launch signifies a pivotal step in Pecca’s growth strategy.
“We are moving up the value chain from being a premium leather upholstery and interiors provider for vehicles, to a key player in driving automotive innovation in Malaysia,” its executive director Hugo Teoh Zi Yi said.
Pecca said the scope of services includes leveraging its deep understanding of local consumer preferences, regulatory requirements and industry trends.
This will see it combine strengths with Shanghai Launch to secure end-customers in the automotive design, development and export, ultimately facilitating technology and knowledge transfer to the local Malaysian workforce in the automotive industry.
Foo explained this type of partnership is crucial to ensure it remains relevant in the industry.
“In this current environment, if we don’t adapt and change ourselves, we will become obsolete. We have specialised in tier-two activities in the last 25 years and it has done us very well.
“If we don’t adapt ourselves and don’t look for growth opportunities, we will eventually lose out to the competition, especially when it comes to new ideas. We have to have longer-term plans, especially to grow in the aviation segment also,” Foo said.
Shanghai Launch is an automotive design company in China that specialises in automotive research and development.
It is also one of the earliest independent automobile research and development institutions in China and has launched more than 400 models, including electric vehicles, passenger cars and commercial vehicles.
“Pecca’s extensive experience in the Malaysian automotive sector and its commitment to quality solutions make it the ideal partner for our expansion into this market.
“We see tremendous potential in combining our technological expertise with Pecca’s manufacturing capabilities and market insights, to create innovative solutions and contribute to the nation’s automotive ambitions,” Shanghai Launch chairman Wang Xun said in a statement.
