KUALA LUMPUR: ConnectCounty Holdings Bhd (Connect) plans to invest close to RM20mil to expand its manufacturing capacity in China.
The facility manufactures interconnect products such as custom cable assemblies, wire harnesses, USB cables, audio and video cables, computer peripheral cables, custom cables and flat cable assemblies.
In a statement on Monday, Connect said it also planned to expand its workforce in China by close to 40% by the end of 2016.
“Connect is well-positioned to tap this industry uptrend because of our experience and expertise as well as the positive headways we are making to expand our capacity while penetrating new markets and industries,” executive director Ang Chuang Juay said.
Connect pointed out that global sales of interconnects reached about US$190bil (RM825.5bil) in 2014, an increase of 8.3% over the previous year.
It said Infobusiness Research and Consulting Sdn Bhd’s data also revealed that global sales were anticipated to expand by a compound annual growth rate (CAGR) of 6.1% between 2015 and 2020, reaching US$266.4bil (RM1.16 trillion).
The company is expected to benefit from its status as an approved vendor to Technicolour Cisco, the global market leader with RM14bil in annual sales and 60 million devices shipped annually.
Ang said the interconnect industry was growing rapidly in tandem with the growing demand for modern consumer electronics as well as the development and application of Internet of Things (IoT) technologies.
“The automotive sector is also causing an uptick in demand for interconnect devices.
“In fact, it has become the biggest end-product market for interconnects as the devices are used in various applications, ranging from lighting to safety control,” he said. - Bernama
Connect reported a net profit of RM3.269mil for the first nine months of last year compared with a net loss of RM1.05mil in the corresponding period of 2014.
Connect shares closed unchanged at 17.5 sen on Monday, with 3.793 million shares being traded.
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