VS Industry Bhd is allocating RM8mil to RM10mil annually in the next three to five years to further improve its production efficiency.
Managing director Gan Sem Yam said this would be achieved by replacing in stages the company’s conventional equipment with hybrid and power-efficient machinery.
Speaking to StarBiz after its AGM recently, he said part of the capital expenditure would be used for research and development, including to produce parts and components for environment-friendly products.
“More multinational corporations (MNCs) are into green products and we have to keep up with the trend,” he said.
Gan said VS Industry had recently secured two contracts from MNCs based in Australia and Singapore to produce parts and components for green products.
He said the Singapore MNC was involved in the production of digital-metered electrical fuse boxes to replace the existing conventional electrical fuse boxes widely used in developing countries.
The Australian company produced underground reservoirs to harvest and store rainwater which could be used by household and industrial users.
Executive director Ng Yong Kang said VS Industry was currently negotiating with another foreign company involved in producing green products and hope to sign the contract this year.
“Contracts from the two new clients and probably the one we are currently negotiating with will keep us busy for at least three to five financial years,” he said.
Ng said the company would continue to diversify its activities and would look at producing parts and components for other renewable energy products such as solar panels and cells.
He said the production of green products would be carried out at its plants in Senai, Johor.
VS Industry is one of the world’s top 50 electronics manufacturing servicer providers with facilities in Malaysia, China, Indonesia and Vietnam. It has MNC clients in Europe, Japan and the United States.
For the financial year ended July 31, 2010, VS Industry net profit rose to RM24.29mil on RM800.17mil revenue from RM5.22mil and RM724.83mil respectively in FY2009.
