KUALA LUMPUR: AMS Advanced Material Bhd (AMS), which provides semi-finished aluminium and copper products, plans to establish a new licensed manufacturing warehouse (LMW) facility in Penang to expand its production capacity and support growing demand from the semiconductor and electrical and electronics (E&E) segments.
Managing director Keh Teng Yang said the expansion is driven by full utilisation at its existing plant and sustained order momentum from customers.
"At the moment, we are at full capacity in Penang. By having this new LMW plant, we can tap further growth.
"It is more or less the same as the existing plant, where we can do about nine to 10 tonnes a day,” he said at the post-listing press conference here today.
According to the group’s prospectus, it is allocating RM8.1 million of the gross proceeds from its initial public offering to set up the new LMW plant cum office.
At the opening gong, AMS Advanced Material Bhd made a flat debut on Bursa Malaysia’s ACE Market at 29 sen, with 15.91 million shares traded.
On its share price performance following the listing, Keh said the group remains focused on strengthening its business fundamentals.
"We are not so worried about the share price. As a management, I actually focus more on the business. By delivering more value to shareholders and customers, and delivering stronger numbers, the share price will reflect automatically,” he added.
Keh said the group is confident of continued growth, supported by sustained demand from customers.
He said AMS is well-positioned to benefit from ongoing expansion in the semiconductor and E&E industries, particularly in Penang.
"We are very optimistic about the prospects of semiconductor industry and E&E segments. As you know, Penang is currently enjoying booming investments from original equipment manufacturers, with a lot of programme transfers from overseas,” he said. - Bernama
