Ingress allots RM37.5m for capex in Indonesia, Thailand, Malaysia
Ingress Corp Bhd is spending RM37.5 million in capital expenditure (capex) this year to grow its operations in Indonesia, Thailand and Malaysia, its executive vice-chair and group CEO Datuk Rameli Musa said.
He said RM28 million will be injected to boost its Indonesian operations, RM7 million for its Thai business and another RM2.5 million for Malaysia.
Rameli said the capex for Indonesia will be utilised to supply auto components mainly to Honda Freed, general Motors and Daihatsu in the neighbouring country, which is seeing an influx of automakers, especially the Japanese, setting up bases or expanding their businesses.
Ingress, through its Indonesian subsidiary PT Ingress Malindo Ventures, recently secured a contract to produce sash component and door sash for general Motors and Honda Freed, respectively. It also supplies auto components to Mitsubishi, Daihatsu and Suzuki in Indonesia.
The automotive-parts supplier is already building a new factory in Indonesia, slated for completion by the end of the month, which will double its annual capacity to 160,000 vehicle sets from 80,000 currently.
“All major original equipment manufacturers have doubled their capacity (in Indonesia) such as Daihatsu, Honda, Nissan, Toyota due to the growth potential in Indonesia and Thailand’s floods last October,” Rameli told a press conference after the company’s AGM yesterday.
Ingress has shifted its operations from Ayutthaya to Rayong, as the former plant which produces components solely for Honda Thailand was inundated by the floods, bringing operations to a halt. The Ayutthaya plant is now used as a warehouse and final point of delivery.
“We’re utilising two plants in Rayong for expansion as we’re getting more businesses in Thailand, with increased volume now with general Motors and Mitsubishi. We have a backlog of orders due to the rapid expansion in Thailand,” said Rameli.
The company has since March resumed parts supply to Honda out of its Rayong plants, but this has led to additional transportation costs of RM4 million per year.
“In the long run, we will continue to study other possible means in reducing the impact of additional costs. That’s why we have another warehouse in Ayutthaya to prevent delivery interruption. We’re also looking at other auto and manufacturing businesses that don’t involve high capex,” he added.
On its business in India, Rameli said Ingress is in talks with partners to look at supplying components to Hyundai, which has the second biggest share of the Indian vehicle market. It is currently supplying components to Suzuki and Fiat there.
http://www.thesundaily.my/news/437656
Category: Regional
