GEORGE TOWN (April 25): Texchem Resources Bhd, which is in the midst of opening up to 35 more new restaurants this year that will cost it approximately RM20 million, is also looking to grow its venture into the aerospace industry.

In particular, it wants to grow its investment in thick gauge/heavy gauge extrusion machines, which are used in medical and life sciences products, as well as its aerospace products.

According to Texchem president and group chief executive Brian Tan Guan Hooi, the group has set aside a capital expenditure of RM10 million to be used between 2016 and 2018 to invest in these machines.

"Our venture in the aerospace sector began in 2015, when we begin to apply our extrusion machine, which was initially used for the medical and life sciences business, for the aerospace as well automobile sector.

"So what we have recently attained is the approval from one aeroplane manufacturing company to use our production parts in their aircraft, in particular for aircraft galley parts," he told a news conference after the group's annual general meeting today.

However, he declined to name the aeroplane manufacturer, due to confidentiality clauses, but shared that the group’s products are used on commercial aircrafts.

The heavy gauge extrusion machine is also used in medical products such as body fluid pans and large washing basins used in hospitals.

Tan shared that the group has invested RM3 million in 2015 to expand its factory in Prai, Penang, to include the manufacturing facility for the heavy gauge extrusion machines.

"At present, aerospace contribution is about 1% to 2% of revenue, but we are looking to grow this, coupled with our medical and life sciences business, which contributes around 25% to our revenue. We [also] hope to turnaround our polymer engineering division, which is currently loss-making," he said.

The polymer engineering division recorded an improvement in the financial year ended Dec 31, 2015 (FY15), with a revenue of RM202.13 million compared with RM190.47 million in FY14, and a significantly lower pre-tax loss of RM2.28 million compared with FY14's pre-tax loss of RM14.03 million in FY14.

Meanwhile, as previously reported, Texchem will be expanding its most successful division, ie its restaurant division which operates outlets like Sushi King, Yoshinoya , Miraku, Tim Ho Wan and Goku Raku Ramen, this year.

Of the 35 outlets it is looking to open this year, 11 will be Sushi King restaurants, 10 Yoshinoya and 10 Hanamaru.

Texchem executive chairman Tan Sri Fumihiko Konishi shared that the group will also be opening four Doutor Coffee outlets, which is a Japanese coffee franchise, in the Klang Valley.

He shared that the group will be setting aside a capital expenditure of approximately RM20 million for this.