02 Apr AT Systematization Gets Orders Worth RM21mil
GEORGE TOWN: AT Systematization Bhd has received orders for precision tooling parts and mechanical components with an estimated market value of RM21mil for the 2018 financial year ending March 31.
Group managing director LA Choong told StarBiz that this represents a 15% growth from a year ago of RM18.3mil.
“We have so far delivered more than RM17mil worth of precision parts and mechanical components to our customers,” Choong said.
The products are used in the automated test equipment and automated production line of electronic manufacturing service companies.
“We are now in a better position to capture a bigger market share of the automated test equipment business due to the investment made three years ago.
“We have invested so far RM30mil for the two manufacturing plants in Bayan Lepas. This investment has enable us to secure more orders from multinational corporations (MNCs).
“In 2019, we expect a 30% growth in our production output, which will help the group to return to the black,” he added.
Choong said about 90% of the delivery is to MNCs in the country, while the remainder is for MNCs in Singapore.
“The bulk of the precision parts and components are used in automated test equipment such as sputtering machine and pick and place equipment.
“The increased in the automation in the production process has resulted in a drop in manual labour, which has in turn generated demand for our precision tooling parts and components,” Choong.
He said the group was also investing RM5mil to set up another production facility in one of its Bayan Lepas plants to manufacture customised enclosures and panels for automated equipment.
“The customers are also MNCs in Malaysia. This segment should generate revenue of RM4mil a month when the plant is ready to operate in late 2018,” he added.
According to Choong, the group is still waiting for Rieter, a Swiss-based manufacturer of knitter machine, to qualify its prototype components.
“We expect the green-light for us to commence mass production in the second half of 2018,” he added.
According to a Transparency Market Research, the automated test equipment (ATE) market will grow at a moderate compounded annual growth rate (CAGR) of about 2.88% from 2012 through 2018 to surpass US$4.36bil by 2018.
The report added that the Asia Pacic automated test equipment market will be the most important one from the market share perspective. The factory automation sector is another driver of growth.
“The global industrial automation market is expected to grow at a CAGR of 6.81% between 2015 and 2020, reaching US$190.45 bil by 2020 from US$137 bil in 2015,” according to a research and markets report.
credit: source from The Star