YKGI Holdings Bhd, which owns manufacturing facilities in Sarawak and Sabah which produce metal roofing products, is expanding to Peninsular Malaysia.
The expansion plans for this downstream business in the peninsular, via wholly-owned subsidiary Asteel group, would be through joint ventures or acquisitions of existing metal roofing firms, according to executive deputy chairman Datuk Soh Thian Lai.
“The company has identified several potential ventures and is in the midst of evaluating its potential ventures,” he said.
Asteel has manufacturing plants in Kuching, Bintulu and Miri in Sarawak and Kota Kinabalu and Tawau in Sabah.
As the market leader in the metal roofing segment here, the Kuching plant produces pre-painted sheet metal coils,roll-formed roofting and related products, galvanised corrugated sheets and plain sheets.
The other four plants manufacture rollformed roofing and related products.
Lai said Asteel group had targeted to invest in two other production facilities in Sabah and open two more concept stores in Sarawak as part of the business expansion plans.“Asteel group also intends to expand its presence to Kalimantan,Indonesia,” he added.
The group currently operates seven “enviro” concept stores in Sarawak, Sabah and Selangor.These stores trade building materials and hardware.
Asteel group’s products are mainly sold in Malaysia as only about one percent of the products are exported to Indonesia,Singapore,Brunei,Solomon and Fiji. Lai said YKGI intends to expand its product offerings of building materials to include safety glass,metal door frames,window frames, metal ceiling and sunshade products.
“This business expansion plan will be undertaken via its joint venture company, ASTEEL Ajiya Sdn Bhd,which is set up together with Ajiya Bhd. YKGI will also be venturing into the provision of industrialised building systems (IBS) to supply and install Ajiya Green Integrated Building System,” he added.
Source: The Star