EP Manufacturing Bhd to set up plant in Kedah, Malaysia

Wednesday, Jun 17, 2015

Automotive parts supplier EP Manufacturing Bhd (EPMB), which recently secured a contract with Mazda Malaysia Sdn Bhd, plans to build a new facility in Kedah to cater for its new business.

EPMB, which has a contract with Mazda to supply chassis components for its Skyactive models, intends to build its new facility close to Mazda's assembly plant in Kulim.

"Currently we are finalising the location of the new plant somewhere up North, such as Kedah," its executive chairman Hamidon Abdullah told reporters after the company's AGM yesterday.

The company which added Honda Malaysia Sdn Bhd into its customer base last year, had recently announced its plan to invest RM44 million to acquire 40 acres of freehold industrial land in Alor Gajah, Malacca to build a manufacturing plant there to cater for its Honda business.

Previously, EPMB said it had intended to build a manufacturing plant with automated robotic assembly lines to enhance its localisation partnership programme with Honda. It said the proposed acquisitions are expected to be completed by Sept 1, 2016.

"Currently it is still at designing stage," he said, noting the new facility in Malacca is expected to be commissioned in 2017.

EPMB is currently renting facilities in Malacca, to supply critical chassis parts for Honda models namely the Jazz, City and HRV.

Hamidon noted that Honda sales have contributed 12.6% to its total revenue in financial year ended Dec 31, 2014 (FY14), becoming its third highest contributor, behind its traditional national car-maker base of Proton Holdings Bhd (Proton) and Perusahaan Otomobil Kedua Sendirian Bhd (Perodua), which contribute 39.3% and 35.9% respectively.

However, Hamidon said going forward, he sees Proton and Perodua will continue to be EPMB's key customers.

For FY14, its net profit grew to RM18.7 million from RM16.4 million a year ago, while revenue increased by 14.7% to RM518.8 million, compared with RM452.3 million in 2013.

"This year will be a significant year for EPMB as we will further expand our customer base, consolidate our expertise and place the building blocks to expand our facilities and market reach for the future," he added.

To date, EPMB has three manufacturing plants located in Shah Alam, Ulu Yam and Malacca respectively.

The company specialises in the manufacturing and assembly of advanced automotive systems comprising metal, modular assemblies, suspension, body and engine parts and of plastic engineered parts and lamp assemblies.