MCE lands another Proton contract to supply components, auto parts

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KUALA LUMPUR (July 11): MCE Holdings Bhd has secured a second contract from Proton Holdings Bhd this year to supply various electronics components and mechatronic parts for new car models over a nine-year period.

Without disclosing the value of the contract, MCE said in a stock exchange filing that the contract will generate a total revenue of RM105 million, while the estimated total investment cost to be incurred will be at RM800,000.

MCE said the contract will commence in the fourth quarter of financial year ending July 31, 2019 (4QFY19).

Proton, a unit of DRB-Hicom Bhd, is expected to kick-start the manufacturing of its first mid-size sports utility vehicle in April 2019, which is set to rival other marquee such as Nissan's X-trail, Honda's CR-V and Mazda's CX-5.

Earlier this year, MCE landed a similar 10-year contract from Proton, which it announced in March. This contract will commence in 1QFY19, and is expected to generate a revenue of RM62 million over the 10-year period.

According to its website, MCE listed parking sensors, functional switch, window lifter, lighting system, anti-theft keyless entry system, and ignition key set system as among the products it supply to original equipment manufacturers.

Listed on the Main Market of Bursa Malaysia since 1997, MCE shares slipped 5.5 sen or 7.53% to close at 67.5 sen today, for a market capitalisation of RM29.73 million.