U-Li May Set Up Vietnam Plant

By Sharen Kaur

UNITED U-LI Corp Bhd, a maker of light fittings and cable support system, aims to set up a plant in Vietnam in three years, the first such venture outside Malaysia.

Group managing director and chief executive officer Datuk James Y.W. Lee said it may set up the plant in Vietnam or in other Southeast Asian countries, a decision that would likely depend on the outcome of a feasibility study it has embarked on.

“The plan to operate a plant in a foreign land with the intention to get closer to customers is still very preliminary, as there is still room to expand capacity at our four plants in Malaysia, which are 60 per cent utilised,” Lee told Business Times in an interview.

U-Li has three plants in Selangor and one with a warehouse in Johor, consuming about 30,000 tonnes of cold roll coils per annum.

The plants were set up for over RM100 million in the last five years, Lee said.

They produce a complete range of products under five categories such as building materials, integrated ceiling systems, steel roof battens, light fittings and cable support system, for the housing and building construction, oil and gas, transportation, telecommunication and water industries.

Lee said 30 per cent of the products are exported to the Middle East, Vietnam, Singapore, Brunei, UK, Australia and Africa.

“We are looking for new markets to grow the business and penetrate existing ones as there is huge potential for the products.

“We are confident with our growth plans as we are the market leader in this industry, apart from Japan,” added Lee.

“We are also modifying our existing product range and introducing new ones to meet demand and stay ahead in the industry. We are looking at launching several new products soon,” Lee said.

Also, U-Li is eyeing contracts to supply its cable support system for Malaysia’s multi-billion ringgit double-tracking railway development and the Bakun project.

“We plan to also supply the cable support system to the oil and gas industry, and for building projects in Putrajaya, where we have existing contracts. We will be focused with our expansions,” added Lee.

Lee had said previously that U-Li is expected to benefit from the rising steel price, whilst turning recession to opportunity.

U-Li also expects to replicate the past performance with double- digit growth.

For fiscal year 2007, it posted a net profit of RM10.25 million and RM145.6 million in revenue.

(c) 2008 New Straits Times. Provided by ProQuest Information and Learning. All rights Reserved.