KUALA LUMPUR: ACE Market-bound Inari Bhd plans to invest RM25 million over two years to acquire new machines, upgrade existing equipment and build a new facility to increase its production capacity.
Its managing director Dr Tan Seng Chuan said the company would invest the amount in FY2011 and FY2012 to meet the expected increase in demand from Avago Technologies Trading Lyd and its other customers.
He said rapid technological advancements the world over have resulted in an ever-expanding pool of technologically-savvy users.
'Indeed, the mass adoption of 3G devices witnessed across the globe today is merely a part of the continuing story of the growth and indispensability of mobile wireless communications in our societies and our lives. Already, 4G and other similar generation devices are being rolled out rapidly into the markets.
In line with this, we intend to increase our existing production capacity to ably support the anticipated increase in orders due to global demand for mobile devices,' he said in a statement June 3.
Inari's wholly-owned subsidiary TECHNOLOGY [] has been a major EMS provider for Avago's wireless semiconductor products since 2006.
Avago is a NASDAQ-listed leader in the design, development and supply of optoelectronics, wireless technologies, fiber optics and networking components, and a strategic shareholder of Inari.
Tan said that it was vital for Inari to continue to grow and enhance its production capabilities to adequately support increasingly-complex requirements of mission-critical components used in wide-ranging electronic products and as well as to compete in the global semi-conductor industry.
'In operational terms, it simply means that Inari would expand our current production floor space from 11,650 square meters to 17,005 square meters ' an increase of at least 46% in manufacturing capacity.
'We target to complete the capacity expansion initiative by first half of calendar year 2012, and are optimistic that it would boost our growth prospects in the near term,' said Tan.
Inari is scheduled to launch its prospectus on June 28, 2011 with a public issues of 83 million new shares at an IPO price of 38 sen.
The company targets to list on the ACE Market on July 19, 2011.
Its managing director Dr Tan Seng Chuan said the company would invest the amount in FY2011 and FY2012 to meet the expected increase in demand from Avago Technologies Trading Lyd and its other customers.
He said rapid technological advancements the world over have resulted in an ever-expanding pool of technologically-savvy users.
'Indeed, the mass adoption of 3G devices witnessed across the globe today is merely a part of the continuing story of the growth and indispensability of mobile wireless communications in our societies and our lives. Already, 4G and other similar generation devices are being rolled out rapidly into the markets.
In line with this, we intend to increase our existing production capacity to ably support the anticipated increase in orders due to global demand for mobile devices,' he said in a statement June 3.
Inari's wholly-owned subsidiary TECHNOLOGY [] has been a major EMS provider for Avago's wireless semiconductor products since 2006.
Avago is a NASDAQ-listed leader in the design, development and supply of optoelectronics, wireless technologies, fiber optics and networking components, and a strategic shareholder of Inari.
Tan said that it was vital for Inari to continue to grow and enhance its production capabilities to adequately support increasingly-complex requirements of mission-critical components used in wide-ranging electronic products and as well as to compete in the global semi-conductor industry.
'In operational terms, it simply means that Inari would expand our current production floor space from 11,650 square meters to 17,005 square meters ' an increase of at least 46% in manufacturing capacity.
'We target to complete the capacity expansion initiative by first half of calendar year 2012, and are optimistic that it would boost our growth prospects in the near term,' said Tan.
Inari is scheduled to launch its prospectus on June 28, 2011 with a public issues of 83 million new shares at an IPO price of 38 sen.
The company targets to list on the ACE Market on July 19, 2011.
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