Business

Wednesday September 30, 2009

Weida sets up first overseas plant in Manila

By Jack Wong


jackwong@thestar.com.my

KUCHING: Utilities infrastructure company Weida (M) Bhd has expanded overseas with the setting up of a plant in the Philippines to manufacture polyethylene engineering products.

The US$1mil plant in Manila, which was commissioned recently, is the company’s sixth.

The other plants are located in Kuching, Miri, Kota Kinabalu, Tawau and Nilai.

Group managing director Datuk Lee Choon Chin said the Philippines, with a population of 90 million, had vast market potential to give the company a bigger platform to replicate its success in Malaysia.

“If the demand is strong, the company will invest in more machinery to produce a wider range of products in the new plant,” Lee said after the company AGM yesterday.

Weida is a leading manufacturer of polyethylene water storage tanks and sewage tanks in Malaysia.

The company has a market share of 50% to 80% in Sarawak and Sabah.

Lee said the long-term prospects of the polyethylene water storage and sewage tanks remained bright as these products were superior in quality compared with the conventional metal and concrete tanks.

“The polyethylene tanks are quality assured, easy to handle and faster to implement,’’ Lee said, adding that they were corrosion and weather resistant, durable, leakage proof, lightweight and hygenic.

He said the company had completed about 50% of a four-year contract worth RM375mil to build water and sewage treatment plants in Damascus under a government-to-government initiative.

Lee said Weida’s manufacturing activities now contributed about RM100mil or 40% to the group revenue annually.

The other significant revenue of RM40mil to RM50mil a year comes from the fixed rental of more than 200 telecommuncations towers Weida built in Sabah via a joint venture with a state-owned company.

Weida has also diversified into oil palm cultivation, presently having a 1,150ha plantation in Bintulu and expecting another 5,350ha to be planted by 2012.

“The first harvest is expected in 2012-2013,’’ Lee said.

Lee said Weida posted a record pre-tax profit of RM23.6mil on revenue of RM268mil for the financial year ended March 30 (FY09), 33% and 35% higher respectively than the FY08 figures.

The AGM approved a gross final dividend of 4 sen per share.


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