KUALA LUMPUR (March 25): Cape EMS Bhd (KL:CEB), which reported its first annual loss in the financial year 2024, has partnered with Taiwan’s Aerospace Industrial Development Corporation (AIDC) to enter the aerospace parts manufacturing industry and expand its renewable energy business.

The group has thus far been focused on power electronics-related segments like battery energy storage and power conversion systems.

“We are pleased to be expanding into new areas like aerospace, an industry that is experiencing strong demand and evolving supply chain dynamics. By combining AIDC’s established global network with our integrated manufacturing capabilities, we are confident that this collaboration will accelerate our growth trajectory and deliver innovative solutions that meet rising industry demands,” CEB managing director and group CEO Christina Tee said in a statement today.

AIDC said the partnership with CEB not only strengthens its aerospace ambitions but also opens doors to the precision engineering sector, an industry projected to reach US$304 billion (RM1.34 trillion) globally by 2025, with Asia-Pacific leading its expansion.

The global aerospace parts manufacturing market is projected to reach US$1 trillion by 2025, with the Asia Pacific region accounting for US$400 billion, representing around 40% of the global market.

AIDC, also known as Hanxiang Aerospace Corp, and Cape EMS also agreed to work on renewable energy projects, particularly next-generation microgrid solutions, or "power islands", which are self-sustaining energy systems to provide clean electricity to remote communities in Southeast Asia and rural Australia.

These solutions will boost energy security and support the region's shift to sustainable power.

Tee said the global energy sector attracts around US$3 trillion in annual investments, with clean energy technologies and infrastructure accounting for US$1.9 trillion. In Southeast Asia, reaching climate targets demands a five-fold increase in clean energy investment, hitting US$190 billion annually by 2035.

Additionally, the partnership will advance sub-micron precision manufacturing to produce essential components for medical and scientific applications, contributing to new innovations in healthcare and research.

Cape EMS specialises in producing and delivering electronic components and devices, providing end-to-end solutions from design to global distribution.

At the market close, shares of Cape EMS rose 1.5 sen or 5.5% to 29 sen, valuing the company at RM287.7 million. The counter has declined 23.68% this year.