KUALA LUMPUR (May 8): Inari Amertron Bhd, which is investing US$5.2 million (about RM18.71 million) to expand its manufacturing plant in Clark Field, the Philippines, expects the expansion to increase its existing capacity in the country by 90,000 sq ft or 50%, bringing the total floor space to 270,000 sq ft.

"Both plants are currently fully utilised and that’s why we have decided on the new expansion to fuel our growth," said Inari Amertron chief executive officer and managing director Lau Kean Cheong in a statement issued in conjunction with the ground breaking ceremony for the expansion project today.

Upon completion of the expansion in mid-2016, Lau said the enlarged manufacturing plant will be utilised for the set-up of manufacturing works in relation to automotive, radio frequency and fibre optics components.

The Clark Field plant is owned by Amertron Inc (Philippines), a 100% subsidiary of Inari Amertron.

"We plan to continue to contribute to the development of the Philippines’ electronic manufacturing services industry alongside that in Malaysia through the development of new part suppliers, technology transfer, export and social enhancement through the planned employment of new staff.

"The new expansion will add 1,000 employees to the group's current 2,500 staff in the Philippines and 5,500 employees in the overall Inari Amertron Group,” said Lau.

Apart from the Philippines, Inari Amertron’s manufacturing facilities are located in Penang and Johor (Malaysia) and Kunshan (China).

As at 2.42pm, Inari (fundamental: 2.7; valuation: 1.5) shares were traded up 1.55% at RM3.27, bringing its market capitalisation to RM2.37 billion. 

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)