This article first appeared in The Edge Financial Daily, on April 26, 2016.
GEORGE TOWN: Texchem Resources Bhd, which is opening up to 35 more new restaurants this year at a cost of about RM20 million, is also looking to grow its venture into the aerospace industry.
It wants to grow its investment in thick gauge/heavy gauge extrusion machines, which are used for medical and life sciences products, as well as its aerospace products.
Texchem group president and chief executive officer Brian Tan Guan Hooi said RM10 million had been set aside to invest in these machines between 2016 and 2018.
“Our venture in the aerospace sector began in 2015. What we have recently attained is the approval from one aeroplane manufacturing company to use our production parts in their aircraft, in particular aircraft galley parts,” he said after the group’s annual general meeting yesterday, but declined to name the aeroplane manufacturer, citing confidentiality clauses, but shared that the group’s products are used in commercial aircraft.
The heavy gauge extrusion machine is also used for medical products.
Tan said the group had invested RM3 million in 2015 to expand its factory in Prai, Penang, to include manufacturing facilities for the heavy gauge extrusion machine.
“At present, [the] 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% of 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), on 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.
Meanwhile, Texchem will be expanding its successful restaurant division, which operates outlets like Sushi King, Yoshinoya, Miraku, Tim Ho Wan and Goku Raku Ramen, this year.