Friday July 30, 2010
Astino in RM21m expansion drive
It’s expanding material ops, diversifying activities
GEORGE TOWN: Astino Bhd is spending RM21mil to expand its roofing materials-manufacturing operations and diversify into new areas.
Group managing director Ng Bak Teng said the company was now setting up a RM15mil factory in Pahang to make roofing products for the central region market.
Ng Bak Teng ... ‘We expect a 5% growth in annual production.’ “The facility should be ready for operations by the end of this year. It can produce roofing material products worth over RM5mil a month,” Ng said.
Last year, Astino produced 6,500 tonnes of roofing and other building material products.
“This year, we expect a 5% growth in annual production due to the global uncertainties, compared with double-digit growth that the group had been experiencing over the past few years.
“The northern region will still contribute about 45% of our revenue this year,” Ng said.
He said the company expected more orders from east Malaysia due to Government infrastructure projects being carried out there.
Astino is diversifying into new businesses such as the manufacture of close house for poultry farming to broaden its income.
“We are investing RM6mil to venture into this area because our coil centre in Valdor Industrial Estate produces raw materials such as steel sheets that can be used to make close house.
“This enables us to be competitive in the business, which is seeing growing demand in the Asean region,” said Ng.
Astino produc ed 6,500 tonnes of building material products last year. He expects the new business to contribute 10% to 15% to Astino’s revenue next year.
Ng said the company did not expect the price of carbon steel – the key raw material for its roofing products – to increase soon.
“Due to slower demand, we expect the price of carbon steel to hover at RM2,000 to RM3,000 per tonne, depending on the grade,” he said.
He said Astino expected exports to contribute 15% of its revenue this year compared with 10% last year.
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