RAWANG (July 7): MCE Holdings Bhd (KL:MCEHLDG) is aiming to raise its exports to around 30% from less than 10% of total revenue now, as the automotive electronics manufacturer ramps up production at its new manufacturing hub as it secures more projects from overseas customers, particularly from the US.
Group managing director Dr Goh Kar Chun said the company expects export sales to also be boosted by its joint venture in India, which is expected to generate additional business.
"At this moment, our export portion accounts for not more than 10% of total revenue, but we are very optimistic the number will gradually increase as we receive more and more projects from overseas," he told reporters after the launch of its new RM50 million auto hub in Serendah on Tuesday.
Toyota is among MCE's largest export customers, Goh said. The group is supplying components to the Japanese automaker's operations in Indonesia, Thailand, the Philippines and Brazil.
MCE has set internal targets of generating RM320 million in annual revenue by 2030 and RM700 million by 2035, supported by capacity expansion and new business wins, said Goh.
Its new auto hub, an eight-acre facility located at the UMW High Value Manufacturing Park in Serendah, Selangor, forms the first phase of the group's long-term investment plan of up to RM200 million. It is expected to more than double MCE's production capacity while strengthening its capabilities in automotive electronics, as well as design, engineering, manufacturing and research and development.
Designed as an Industry 4.0-ready facility, the auto hub incorporates clean-room production areas and controlled manufacturing environments required for advanced automotive electronics used in both internal combustion engine (ICE) vehicles and electric vehicles (EVs).
Goh said the facility is already producing infotainment systems and advanced driver assistance systems (Adas) for Perodua, with additional capacity earmarked for future projects involving advanced automotive electronics.
He said the hub would be developed in phases over the next decade, with phase one now operational and phase two to commence as additional business is secured.
"We see there will be more business to garner, and products involving advanced electronics require a very stringent manufacturing environment. All those products will be produced by this factory," he said.
MCE is now in discussions with three to four additional vehicle manufacturers, he said, as it seeks to position itself to benefit from the government's push for greater localisation in the automotive industry.
The company currently supplies Proton, Perodua and several established foreign marques, as well as newer entrants that have entered Malaysia over the past two to three years. "We are looking at at least another three to four companies that we are already talking to," he said.
While discussions remain at an early stage, Goh said MCE is preparing its facilities to ensure its manufacturing capabilities and cost competitiveness meet customers' requirements. "We are working towards that direction to localise as much as possible," he said.