MCE Holdings commences construction for RM50 mil manufacturing facility in Serendah
19 Apr 2024
Automotive electronic parts manufacturer MCE Holdings Bhd has commenced the construction for its MCE Auto Hub, the company’s new manufacturing facility in Serendah, Selangor, with an initial investment of RM50 million for the first phase of the development.
MCE group managing director Dr Goh Kar Chun said upon completion, the hub will serve as MCE’s primary production facility, bolstering its capacity to meet the growing demand for electronic components and systems in both internal combustion engine (ICE) vehicles and electric vehicles (EVs).
“The investment signifies our aim to lead in supplying automotive electronics and mechatronics parts in the region, capitalising on Malaysia’s advantage and its highly established electrical and electronics (E&E) industry, enhancing our capacity in supplying sophisticated products that are designed, produced, and made in Malaysia,” he said during the construction commencement ceremony on Friday.
Goh said the plant will seek to address the evolving needs of next-generation automobiles, particularly in advanced automotive electronics such as cockpit infotainment systems, digital displays, and various components for both ICE vehicles and EVs.
Furthermore, Goh noted that MCE is committing a further investment of RM150 million to RM200 million over the next 10 years in the new manufacturing facility to ensure the company remains competitive to support the government’s aspiration to become a regional leader in manufacturing, engineering, technology and sustainable development in the automotive sector, as outlined in the National Automotive Policy 2020 (NAP 2020).
Construction for the first phase of the new plant is expected to be completed by the end of the year, with operations slated to begin in 2025.
MCE’s net profit in the second financial quarter ended Jan 31, 2024 (2QFY2024) rose marginally by 6.4% to RM4.52 million from RM4.25 million in the previous year, mainly due to an increase in demand for the group’s products from its customers.
Quarterly revenue inched up 2.3% to RM40.05 million from RM39.13 million.
Shares of MCE were down one sen or 0.65% to close at RM1.52 on Friday, with a market capitalisation of RM187.81 million. However, the counter has risen 56.7%, or 55 sen, over the past year.
Source: The Edge Malaysia
