KUALA LUMPUR: MBM Resources Bhd’s subsidiary Oriental Metal Industries (M) Sdn Bhd (OMI) is investing RM103 million in an alloy wheel manufacturing factory in Rawang, with the annual capacity to produce one million units.
MBM said the investment would see its 78%-owned OMI become the largest Tier-1 integrated wheel manufacturer in the country.
MBM managing director Looi Kok Loon said the venture into alloy wheel manufacturing is a natural progression for OMI, which has been manufacturing steel wheels since 1985.
“There is a growing demand for high quality yet competitively-priced alloy wheels by car manufacturers and assemblers in this country.
“We aim to offer to our current and potential customers a very attractive locally made alternative to imports, which are often exposed to vagaries such as currency fluctuations, product quality and delivery issues. Aside from the local market, we are targeting to export about 35% of our products,” he said.
The other shareholders of OMI are its technical partner, Central Motor Wheel Company Ltd of Japan (CMW) with a 19% stake while the remaining 3% is held by Toyota Tsusho Corp.
MBM said phase one of the project, which is next to OMI’s existing wheel module assembly plant, is scheduled to be completed by 4Q12.
When fully completed by 3Q15, the13,000 sq m plant will have the capacity to produce one million units of alloy wheels annually to cater for both domestic and export markets.
The alloy wheels will be manufactured to original equipment manufacturer (OEM) standards, which require the products to undergo a heat treatment process after casting for optimum strength and durability.
CMW president Yukio Azuma said the new investment is part of the expansion of its 27-year old partnership with MBM.
“The new plant will be setting benchmarks for our future manufacturing facilities. We will extend our fullest support, especially our technical expertise, to ensure that the alloy wheels produced are of the highest standards,” he said.
This article appeared in The Edge Financial Daily, January 13, 2012.
MBM said the investment would see its 78%-owned OMI become the largest Tier-1 integrated wheel manufacturer in the country.
MBM managing director Looi Kok Loon said the venture into alloy wheel manufacturing is a natural progression for OMI, which has been manufacturing steel wheels since 1985.
“There is a growing demand for high quality yet competitively-priced alloy wheels by car manufacturers and assemblers in this country.
“We aim to offer to our current and potential customers a very attractive locally made alternative to imports, which are often exposed to vagaries such as currency fluctuations, product quality and delivery issues. Aside from the local market, we are targeting to export about 35% of our products,” he said.
The other shareholders of OMI are its technical partner, Central Motor Wheel Company Ltd of Japan (CMW) with a 19% stake while the remaining 3% is held by Toyota Tsusho Corp.
MBM said phase one of the project, which is next to OMI’s existing wheel module assembly plant, is scheduled to be completed by 4Q12.
When fully completed by 3Q15, the13,000 sq m plant will have the capacity to produce one million units of alloy wheels annually to cater for both domestic and export markets.
The alloy wheels will be manufactured to original equipment manufacturer (OEM) standards, which require the products to undergo a heat treatment process after casting for optimum strength and durability.
CMW president Yukio Azuma said the new investment is part of the expansion of its 27-year old partnership with MBM.
“The new plant will be setting benchmarks for our future manufacturing facilities. We will extend our fullest support, especially our technical expertise, to ensure that the alloy wheels produced are of the highest standards,” he said.
This article appeared in The Edge Financial Daily, January 13, 2012.
