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Greatech upbeat on double-digit growth

TheStar Tue, Jun 30, 2020 10:31am - 4 days ago


“The Detroit office will focus on the EV battery segment, while Greatech’s Chicago office will mainly cater to the medical segment, ” chief executive officer Tan Eng Kee said after Greatech AGM yesterday,

PETALING JAYA: Industrial automation solutions provider Greatech Technology Bhd is optimistic of a double-digit growth in revenue for the financial year ending Dec 31,2020 (FY20), mainly driven by its solar, electric vehicle (EV) battery and medical segments.“We aim to increase the market share of our product offerings as well as diversify our markets and products.

“We will be setting up three new offices across the United States, which should be ready by the third quarter of this year.

“The Detroit office will focus on the EV battery segment, while Greatech’s Chicago office will mainly cater to the medical segment, ” chief executive officer Tan Eng Kee said after Greatech AGM yesterday,

He added that said the group would focus on developing capabilities across three areas, namely, talent, market and product.

“Meanwhile, the core business segment for Greatech’s office in Arizona will be consumer goods, ” he said.

Following that, Greatech planned to establish its presence in Germany in 2021, as part of the group’s global expansion move.

“We will disclose more on our plans for Germany next year, but tentatively, we aim to commence business in Germany with the EV battery and medical business segments.

“In time to come, we will also share more on a new business segment that we intend to roll out next year, ” Tan explained.

In Malaysia, Greatech will be focusing on the relocation of its production facility, from Kulim in Kedah to Batu Kawan, Penang.

The relocation, which will remove duplicated overheads, is estimated to be completed by February 2021.

As for its capital expenditure, Greatech has allocated some RM40mil for the construction of a 1.5-storey building in Batu Kawan as well as the purchase of computer numerical control (CNC) machinery.

Given Greatech’s expansion plans, the group intends to conserve its cash for this purpose and as such, has no plans to pay out dividends for the next three years.

Greatech has cash and cash equivalents amounting to RM232mil, which rose 427% on a quarter-on-quarter basis.

As of end March 2020, Greatech has an order book of RM217mil, which will last the group until the first quarter of 2021.






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