KUALA LUMPUR (Aug 16): V.S. Industry Bhd has secured a US$82 million contract for the manufacturing of new model of coffee brewer from one of its existing key customers.

In a filing with Bursa Malaysia today, the electronics manufacturing services provider said the contract is for a period of three years.

This is the first full own brand manufacturing (ODM) model of coffee brewer by V.S. Industry for the customer, and the customer has granted exclusive manufacturing rights to the group for the first 18 months.

Under the deal, V.S. Industry will design and manufacture the new model of coffee brewer, while the customer undertakes to purchase a certain minimum quantity over that next three years, amounting to US$82 million.

The group expects to begin mass production of the new coffee brewer in January 2017 and the contribution should kick in, starting current financial year ending July 31, 2017 (FY16).

V.S. Industry managing director Datuk Gan Sem Yam said this is a significant milestone for the group. "To have us fully design a coffee brewer for them, demonstrates the level of confidence and trust they have in our capability and quality."

Gan said the client is a well-known brand of personal beverage system company in North America, with annual turnover of a few billion U.S. dollars.

He also shared that V.S. Industry is increasingly moving up the value chain to be the ODM producer, instead of just being an original equipment manufacturing (OEM) producer.

"This helps to forge a stronger bond with our customers. In fact, our highly capable research and development team now undertakes designing, prototyping and testing work for a number of our customers," he said.

Shares in V.S. Industry closed down one sen or 0.69% at RM1.43 today, with 4.02 million shares traded. It had a market value of RM1.67 billion.