GEORGE TOWN: Volcano Bhd
will invest over RM100mil in the next two to three years to expand and upgrade its operations in Thailand and Malaysia.
This is in line with the aim to position the group as the dominant component and parts manufacturer for the electrical and electronics (E&E), automotive and medical technology industries in Asean.
Group managing director Datuk Nelson Ch’ng Huat Seng said Volcano is spending over RM50mil to construct a 120,000-sq-ft plant and warehouse on a four-acre site in Rayong, Thailand.
“The facility will produce plastic components for the medical, electronic, consumer, household, industrial and automotive sectors.
“We provide value-added services such as spray painting, printing, laser marking and assembling activities for our customers,” he said.
The manufacturer of parts and components, including metal and non-metal nameplates and plastic injection moulded parts, is targeting to complete the Rayong plant in May 2025.
In Penang, Volcano is renovating the plant it acquired recently.
“We plan to commence production in 2024. We are in talks with a US-based customer to secure a battery management system project. If the deal is closed, we will produce the product in the new Penang plant,” Ch’ng said.
Volcano is currently setting up a marketing arm in Indonesia. “We plan to have marketing arms in Vietnam and the Philippines by 2025 and 2026,” he said.
From Malaysia and Thailand, the group exports to markets worldwide.
“This is why we are expanding the operations in Thailand and Malaysia. We can attract customers globally because we have a manufacturing presence in more than one country.
“If one of the manufacturing sites is in a lockdown mode due to a crisis such as pandemic outbreak, there is a backup operation to continue supporting our customers, ensuring uninterrupted support,” he said.
For the financial year ending June 30, 2025 (FY25), the group has allocated RM40mil as capital expenditure to upgrade its manufacturing operations.
“The capital expenditure will be to upgrade our business operations in the automotive, medical, household products and E&E industry,” he said.
On the environmental, social and governance front, Volcano has started implementing solar energy, recycled packaging materials and having a wastewater management systems.
“We want to show our customers our commitment to build a sustainable environment business network,” he said.
Ch’ng also said the group would focus on developing human talents.
