EPMB expects revenue to top RM350m in 2008
22th October 2007

AUTO parts maker EP Manufacturing Bhd (EPMB) expects to push its revenue past RM350 million next year, a 17 per cent increase from this year, helped by maturing investments and better sales of structural and modular car components.

EPMB executive chairman Hamidon Abdullah said as its production line efficiency improves, it opens doors for EPMB to enter growing markets like China, India or Indonesia.

The company, which makes bumpers, fuel tanks and doors for car makers like Proton Holdings Bhd, has invested close to RM400 million for research and development.

"This would include total investments in terms of machinery and assembly lines. We believe in having strong research and development because through it, we can receive technology used to sustain the business," said Hamidon.

EPMB's strategy is to invest during the down times so that it takes the first bite when the market turns around.

He added that it was also important to network with strategic global components suppliers to control the cost structure.

"For example, we work with Bosch (Pty Ltd) and rely on their infrastructure globally to buy components at a cheaper rate," he said.

The company enjoys better prices when buying from countries such as China, Korea, Italy, Portugal, Indonesia and Thailand. EPMB and Bosch tied-up in December 2003 to supply brake modules to national carmaker Proton Holdings Bhd and other carmakers.

EPMB's senior manager for finance and special project Ong Tsuey Yun said that close to 20 per cent of EPMB's RM300 million automotive revenue for 2007 would be derived from exports to the Middle East.

She said that the core difference in dealing with the Middle East was their progressive approach on technology features to help car sales such as headlamps using LED (light-emitting diode) technology.

For its financial year ended December 31 2006, EPMB recorded a turnover of RM230 million.

On venturing overseas, Hamidon said he will only do so when he has maturing technology and the right manpower capable of performing overseas. There are currently 2,000 employees in EPMB's automotive division.

"Failing those two, then I think its premature for EPMB to go overseas," he said.

Hamidon said EPMB was talking to several parties overseas.

Source:
BUSINESS TIMES