Weida sets aside RM10mil for capex

KUCHING: Weida (M) Bhd will invest some RM10mil to upgrade its manufacturing plants that produce high-density polyethylene engineering products, which are enjoying strong demand nationwide.

Group executive chairman Datuk Lee Choon Chin said the capital expenditure (capex) for the current financial year ending March 31, 2018 (FY18) would mainly be in new machinery and automation.

“We expect the company’s manufacturing segment to achieve a single-digit growth in the current FY. There is still room for expansion in the utilities and infrastructure sectors, particularly in rural water, drainage and waste management,” he told StarBiz after the company’s AGM on Aug 22.

Weida’s five manufacturing plants in Malaysia and a sixth in the Philippines offer more than 200 products. The main products are water tanks, septic tanks, water pipelines, electrical power conduits, telecom conduits and towers, as well as drainage culverts.

The company is Malaysia’s largest manufacturer of septic tanks for both domestic and commercial applications. Weida is a leading manufacturer of underground drainage pipe systems for subsoil, storm drains and culvert applications.

Weida recorded about RM30mil in sales of septic tanks nationwide in FY17.

He said the company has been supplying its engineering products to major infrastructure projects, including the Klang Valley mass rapid transit, and highways in Peninsular Malaysia.

“We are currently supplying our products, also including road barriers, to about 50% of the work packages in the Pan-Borneo Highway project. The volume of supply will go up going forward, as construction work of the highway accelerates,” he added.

On the Sarawak side, the Pan-Borneo Highway involves 11 work packages covering a total length of 746km from Telok Melano in the southern region to Miri in the north.

Its polyethylene culverts are increasingly being accepted by both the government sector in road construction projects and the private sector, especially in oil palm plantations for drainage infrastructure.

Source: http://www.thestar.com.my/business/business-news/2017/08/28/weida-sets-aside-rm10mil-for-capex/