Malaysian aerospace sector gets a boost from CTRM's latest RM3.4bil contract - MIDA | Malaysian Investment Development Authority
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Malaysian aerospace sector gets a boost from CTRM’s latest RM3.4bil contract

Malaysian aerospace sector gets a boost from CTRM’s latest RM3.4bil contract

18 May 2023

DRB-HICOM Bhd’s subsidiary Composite Technology Research Malaysia Sdn Bhd (CTRM) has been awarded a new contract worth RM3.4 billion for the manufacturing and production of aero components for several level 1 vendors supplying to global aircraft manufacturer Airbus.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the contract would run from 2022 to 2030, with a cumulative value of RM6.64 billion until 2030, according to a report by Bernama. 

The minister added that CTRM planned to expand its technical workforce by 24 per cent or 300 individuals in the upcoming year (2023-2024) to enhance their human capital.

Furthermore, Tengku Zafrul said CTRM aimed to boost the revenues of small and medium enterprises by 25 per cent by strengthening the domestic supply chain.

“This clearly proves that leading multinational companies consider Malaysia’s aerospace industry landscape as stable and conducive to their global supply chain,” he said after visiting CTRM’s new factory in Batu Berendam, Melaka.

During the visit, Tengku Zafrul also officiated CTRM’s new production facility called “Building 6” to produce components under the new contract.

The RM159-million facility is fully equipped with high technology machinery and equipment, facilitated by the National Aerospace Industry Corporation Malaysia and Malaysian Industrial Development Finance.

Thus far, CTRM has been an important Tier-2 supplier for Airbus and Boeing in the region, producing wing and fan cowl composite aircraft parts for A320, A350, A380, A400M, B737, B767 and B787 aircraft, among others.

The A320/21 single aisle aircraft project was first awarded to CTRM in 2001 and has since been one of CTRM’s main sources of revenue with a total of 10,000 aircraft sets delivered to the customer to-date.

Currently, 84 per cent of CTRM’s revenue was contributed by Airbus and 11 per cent by Boeing, according to the Investment, Trade and Indusry Ministry.

Meanwhile, in a statement issued in conjuction with the visit, Tengku Zafrul said Malaysia was on the right track to achieve its 12th Malaysia Plan aerospace target of securing RM30 billion revenue with 30,000 jobs opportunities by 2025.

“CTRM has worked strategically over the years to be regarded as one of Airbus’s top five global suppliers for composite aerostructure. This proves not only that the ministry’s policy on the aerospace industry development is being executed well, but also Malaysia’s aerospace industry’s capability to maintain the highest quality standards imposed by the aircraft original equipment manufacturers,” he added.

Source: Bernama