PIE sees record-breaking revenue for current financial year
GEORGE TOWN: PIE Industrial Bhd expects to close this financial year ending Dec 31 with a record breaking revenue backed by recently secured orders for industrial electronic and telecommunication products that have an estimated value of over US$20mil per annum.
The Bayan Lepas-based manufacturer’s managing director Mui Chung Meng said two projects helped the company achieve the record breaking revenue, which would be the highest in the past five years.
“The recently secured projects are for customers in the US and Europe involved in the telecommunications and industrial electronic business.
“These projects are expected to generate about US$20mil per annum for the group starting this year.
“We have started mass production for these products, which will be delivered to customers in the US and Europe,” Mui said.
Mui said the company was now working on securing two more projects for customers in Asia and in Europe, which would generate over US$30mil per annum.
“Once the deals materialised, we will look at setting up another production facility in one of our seven manufacturing sites in Seberang Jaya. These are products for use in the automobile accessory and industrial electronic sectors.
“We hope to seal the deals by the end of the year,” Mui added.
However, he said it was too early to make projections on net profit despite the foreign exchange gains.
“A lot would depend on how the ringgit and US dollar fluctuate. Currently, the ringgit has strengthened a bit, while the greenback has softened,” he added.
PIE’s computer numerical control (CNC) precision tooling division will be cutting down outsourcing expenditure by about RM5mil a year.
“The team has just completed a self- developed laser marking automation project which has eliminated use of operators in the handling and operation of the process.”
“The CNC division supports our automation processes, plastic injection, metal stamping and electronic assembly operations by providing plastic and metal mould, jig and fixtures fabrication, to broadening our revenue base and more effectively support all existing customers,” he added.
Mui pointed out that the motorcycle accessories business was a potential growth area, as the worldwide motorcycle market demand has been forecasted to grow at 6% per annum to over 132 million units next year with a US$120bil value, according to a ReportsnReports projection.