Nihon Garter: infrastructure and competent governance among reasons for Penang expansion

GEORGE TOWN: The tri-lingual ability of Malaysians, the world-class workforce, infrastructure, facilities and competent governance were the reasons why Japan-based NGC Garter (M) Sdn Bhd (Nihon Garter) expanded its operations here from just a sales office six years ago to a full-fledged manufacturing plant today.

Its managing director CY Tan, a Penangite who migrated to Japan 28 years ago said the decision for the company to invest RM40 million in the Penang plant was based on the tremendous potential for growth in the country.

"I was sent here six years ago to set up the sales office and the business has expanded at a rapid pace which is why we decided to set up the plant here instead of Thailand and Singapore or even other states in Malaysia.

"With multi-lingual engineers, we are able to serve our customers worldwide effectively and this is something we can never achieve elsewhere," Tan added.

Nihon Garter is the world leader in the industry controlling 72% of the world market for the manufacturing and assembling of industrial equipment and carrier tape that is widely use in the semiconductor & LED market.

Among Nihon Garter's customers are leading LED multi-national companies namely OSRAM, Agilent, Philips Lumined, Panasonic and Renesas, among others.

It has manufacturing facilities in China, Taiwan, Korea, Philippines and Japan, aside from their presence in Russia, India, Vietnam and Thailand.

Leveraging on Nihon Garter Japan's core competencies, Malaysia Garter provides total solutions to its customers in the region, including those in Malaysia with a broad range taping and sorting handlers, and a wide variety of carrier tapes & cover tapes.

"We are well positioned to service targeted markets and be a preferred supplier to our customers, offering one stop packaging solutions," Tan added.

Tan said from a staff force of four, Nihon Garter now has 26 personnel, mostly engineers for its fully automated 22,000 sq ft facility in Bayan Lepas, which was only utilising two-thirds of its capacity.

Tan said Nihon Garter Malaysia target was to contribute 30% of Nihon Garter's worldwide revenue by 2011.

"We are still looking to hire more engineers in the years to come to help us grow 40% to 50% annually," he added.

Airbus boosts single-aisle aircraft production to rate 40 per month by 2012

KUALA LUMPUR: Airbus will increase the monthly production rate of its A320 Family aircraft to 38 per month in August 2011, and to 40 per month in first quarter 2012.

Currently Airbus turns out 34 A320 Family aircraft per month, rising to 36 from December 2010.

For the time being the A330/A340 Family production remains at rate 8.5 per month.

In a statement July 30, Airbus said the decision to raise its single-aisle production rate was driven by the continuing strong demand for its eco-efficient single-aisle aircraft and a record backlog in excess of more than 2,200 A320 Family aircraft.

Airbus executive vice president programmes Tom Williams said the recent Farnborough International Airshow -- where Airbus garnered orders worth US$28 billion (RM89.6 billion) in total and the leasing companies made a strong return to the market -- was clear evidence of a strong and positive trend towards recovery.

'The low operating costs and high dispatch reliability offered by the A320 Family make it the market's best-seller. Increased demand for the aircraft and a healthy backlog lead us to decide to further ramp up our production rate to 40 aircraft per month by 2012,' said Williams.

Airbus said it delivered a total of 498 aircraft in 2009, including 402 A320 Family aircraft, both new company records for a single year.

The company has delivered 250 aircraft by the end of June and is on track to set another delivery record in 2010, it said.

The A320 Family, which includes the A318, A319, A320 and A321, is recognised as the benchmark for the single-aisle aircraft family.

More than 6,500 Airbus A320 Family aircraft have been sold and over 4,300 delivered to more than 310 customers and operators worldwide, it said.

Tech stocks decline on gloomy outlook

KUALA LUMPUR: TECHNOLOGY []-related stocks on Bursa Malaysia fell on Friday, July 30 after US technology companies had issued glum outlooks.

The stocks also suffered on news that Japanese manufacturing activity expanded in July at its slowest pace in four months, as overseas demand slackened following a rapid recovery earlier this year.

The Nomura/JMMA Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 52.8 in July from 53.9 in June, the lowest level since 52.7 in March.

At the mid-day break on Bursa Malaysia, Unisem and Notion Vtec fell six sen each to RM2.29 and RM2.62, MPI and AIC down one sen each to RM6.16 and 64 sen respectively, and Industronics down 3.5 sen to 40 sen.

Vitrox fell two sen to 77 sen, while Green Packet and Pentamaster shed 0.5 sen each to 97.5 and 31 sen respectively.

Regional markets dip after Japanese manufacturing slows down

KUALA LUMPUR: Regional markets, including Bursa Malaysia sagged on Friday, July 30 after Japanese manufacturing activity expanded in July at its slowest pace in four months, as overseas demand slackens following a rapid recovery earlier this year.

The Nomura/JMMA Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 52.8 in July from 53.9 in June, the lowest level since 52.7 in March, according to Reuters.

The index remained above the 50 threshold that separates contraction from expansion for the 13th consecutive month.

The output component of the PMI index declined to 53.8 from 55.9 in June, which is the slowest pace of growth in output in 13 months as some companies tried to sell down their inventories due to uncertainty about the strength of the global economy, said Reuters.

At the regional markets, Japan's Nikkei 225 fell 1.77% to 9,524.13, the Shanghai Composite Index lost 1.16% to 2,617.48, Hong Kong's Hang Seng Index down 0.52% to 20,983.93, the South Korean Kospi 0.75% to 1,757.60, Taiwan's Taiex 0.42% to 7,766.04 and Singapore's Straits Times Index down 0.48% to 2,983.30.

On Bursa Malaysia, the FBM KLCI dipped 1.03 points to 1,357.38 at the mid-day break. Losers beat gainers by 377 to 232, while 268 counters traded unchanged. Volume was 435.90 million shares valued at RM519.17 million.

Crude palm oil for the third month delivery rose RM10 per tonne to RM2,524; crude oil fell 22 US cents per barrel to US$78.14 (RM249.27) while gold added 43 cents to US$1,168.68 per ounce.

F&N was the top loser this morning and fell 20 sen to RM14.50; Bursa lost 16 sen to RM7.02, Suiwah 13 sen to RM1.46, while Perstima, Cycle & Carriage, and PPB Group fell 12 sen each to RM4.98, RM5.85 and RM17.28, respectively.

Tenaga, Telekom and IJM Corp fell three sen each to RM8.57, RM3.36 and RM5.04, respectively, while MAS, RHB Capital, YTL Corp and KLK lost two sen each to RM2.13, RM6.50, RM7.55 and RM16.88, respectively.

Among the major gainers, Tasek jumped 69 sen to RM7.88, Petronas Gas up 40 sen to RM9.95, Nestle 18 sen to RM38.98 while Hong Leong Industries and PLUS added 12 sen each to RM5.02 and RM3.87, respectively.

Sinotop was the most actively traded counter with 32.8 million shares done. The stock fell 6.5 sen to 24.5 sen.

Other actives included Timecom, SAAG, JCY International, Scomi, E&O and Malton.

Shell secures 14-year lease to LBT terminal at Westports

KUALA LUMPUR: Shell Malaysia Trading Sdn Bhd has signed a long-term sublease agreement with Westports Malaysia Sdn Bhd at Port Klang for storing, supplying and distributing petroleum products.

The 14-year agreement enables Shell to operate and manage liquid bulk cargo at Westports Liquid Bulk Terminal (LBT).

Products to be stored initially are diesel and petrol.

"Westports is proud to have one of the largest companies in the world operating at the Westports LBT terminal," said Westports' executive director Ruben Emir Gnanalingam in the statement released here, on Friday, July 30.

He added that Shell, emerging as a conventional client, certainly speaks volume of Westports' strength, especially its strategic location to attract leading industries to undertake commercial activities at the port.

The terminal spans 9.71 hectares and includes access to Westports' jetty that is medium range/long range vessel capable, cargo lines, fuel and chemical tanks and gantry facilities. ' Bernama

BMW Group Malaysia begins local production of the New BMW 5 Series

KUALA LUMPUR: BMW Group Malaysia on Friday, July 30 rolled out its the first locally assembled production model of the new BMW 523i at the BMW assembly plant in Kulim, Kedah.

The retail price (on the road, without insurance, with BMW Service Inclusive + Repair) for the locally assembled BMW 523i is RM383,800.

BMW Group Malaysia managing director Geoffrey Briscoe said the BMW 5 Series plays an iconic role in the history and success of the BMW Group.

"Time and time again, the car has proven itself to be the superior choice in its segment and with the introduction of the all-new BMW 5 Series, we at BMW Group Malaysia are confident that the legacy of the BMW 5 Series will be one that continues to grow from strength to strength in Malaysia," he said in a statement July 30.

Briscoe said the introduction of local assembly for the new BMW 5 Series would lead to significant benefits to Malaysian customers by reducing total cost of ownership, waiting time for complete units and spare parts while maintaining the same premium standards and offering that are expected of a BMW car.

"With an iconic legacy to live up to, the sixth generation BMW 5 Series features all the latest innovations that have set BMW apart as the worlds most valued brand in the automotive segment the world over," he said.

The BMW assembly plant in Kulim has been operational since 2008, and has produced more than 4,900 units to date.

With a workforce of over 400 employees and equipped with the latest in manufacturing technologies, the plant generates variants of the BMW 5 Series and BMW 3 Series in Malaysia.

The BMW Assembly Plant is operated in partnership with Inokom Corporation, a subsidiary of SIME DARBY BHD [] at the Inokom factory in Kulim, Kedah. Both BMW and Inokom share factory space but operate separate and independent assembly lines in the facility.

BMW Group Malaysia also confirmed that the organisation will be introducing the much anticipated locally assembled BMW 528i later in the year.

Kia Motors global sales grow 49.2% in 1H 2010

KUALA LUMPUR: Kia Motors Corporation's global sales grew 49.2% in the first half of 2010, based on shipment volume of 990,000 units, compared to the same period last year.

In a statement on Friday, July 30, Kia said export market sales, as well as domestic sales, increased significantly due to the continuous launch of new models onto the global marketplace, including Kia Cadenza, Forte (Cerato), all-new Sorento and all-new Sportage.

Global sales of Kia Motors on a retail basis totaled one million units during the first half of 2010, an increase of 34.1%, compared to the previous year, it said.

US market sales increased by 15.4% thanks to the successful launch of the all-new Sorento, it said.

"Although the European market continues to be affected by the economic recession and the end of the government tax support in many countries, Kia has increased sales and market share with the introduction of the new Europe-only MPV, Venga, and the strong sales of its flagship models Picanto and cee'd.

"China market sales increased dramatically with 76.8% growth due to the market's booming automobile market and high sales of new Kia models," said Kia.

FBM KLCI claws back into the black at mid-morning

KUALA LUMPUR:'' The FBM KLCI clawed back into the black at mid-morning on Friday, July 30 after having declined at the opening bell when it fell in line with the retreat at key regional markets following the overnight slip on Wall Street.

At 10am, the FBM KLCI rose 1.16 points to 1,359.57, lifted by gains including at CIMB, Sime Darby, RHB Capital, Petronas Gas and PLUS Expressways.

Gainers trailed losers by 190 to 222, while 179 counters traded unchanged. Volume was 155.33 million valued at RM151.78 million shares.

RHB Research Institute Sdn Bhd said the FBM KLCI's medium-term view has turned more bullish following another positive candle recorded on Thursday, hence confirming the recent breakout of the 1,350 tough resistance level.

It said that compounded with a fresh year-high on the back of robust daily turnover (800 million-one billion shares), the bulls are ready to take the market even higher in coming sessions.

"Encouragingly, Thursday's gain spread evenly across the board, as both blue chips and lower liners enjoyed strong rotational interests throughout the day. This also strongly indicates that the current uptrend is sustainable.

"While we do not discount the possibility of mild profit-taking activities ahead of the weekend and the US 2Q GDP report that is due later tonight, we believe any profit-taking pressure will be well-absorbed," it said.

Given the upbeat technical readings as well as the steady overseas performance of late, the FBM KLCI could gear up for an extended rally to the next upside target at 1,390, said RHB Research.

On the downside, the major resistance-turned-support of 1,350 would continue to protect the current uptrend, it said.

Among the major gainers on Bursa Malaysia, Petgas rose 39 sen to RM9.94, Nestle 18 sen to RM38.98, PLUS 13 sen to RM3.88, Goh Ban Huat 12 sen to RM1.20, Lafarge Malayan Cement and MNRB added eight sen each RM6.78 and RM2.82, while P I E and New Hoong Fatt gained seven sen each to RM4.17 and RM2.36.

CIMB and RHB Capital rose three sen each to RM7.48 and RM6.55, while Sime Darby added two sen to RM7.71.

Suiwah was the top loser and fell 13 sen to RM1.46, YTL lost 11 sen to RM7.46, Tomypak down 10 sen to RM3.59 while Parkson, BAT and Hong Leong Bank lost eight sen each to RM5.50, RM43.80 and RM8.81, respectively.

Sinotop was the most actively traded counter with 18.63 million shares done. The stock fell 5.5 sen to 25.5 sen.

Other actives included Timecom, Scomi, Tanco, JCY International, E&O, Ranhill, Landmarks and Scomi Marine.

Tanjong announces cancellation of listing in London

KUALA LUMPUR: Tanjong Public Ltd Company has announced the cancellation of its standard listing of ordinary shares of 7.5 pence (37 sen) each on the London Stock Exchange.

Notice of the cancellation was provided on Friday, July 30 to the UK Listing Authority (UKLA), said the company in a filing to Bursa Malaysia on Friday.

The cancellation will take effect at 8am (London time) on Friday Aug 27, which is 20 business days from the notification to the UKLA.

Tanjong shares were suspended on Tuesday, and the stock was last quoted at RM17.88. ' Bernama

FBM KLCI opens in the red

KUALA LUMPUR: The FBM KLCI fell 1.26 points to 1,357.15 at 9.05am on Friday, July 30 dragged by losses including at Tenaga and Telekom Malaysia.

The decline at Bursa Malaysia was also in line with the negative sentiment at most regional markets following weak outlooks from US TECHNOLOGY [] companies and downbeat comments by a Federal Reserve official underlined concerns about the U.S. economic recovery.

On Bursa Malaysia, among the top losers in early trade, Tenaga fell three sen to RM8.57 while TM lost two sen to RM3.37. TSH fell eight sen to RM1.80, Notion Vtec, Bursa and Suiwah Corp down five sen each to RM2.63, RM7.13 and RM1.54, while M3nergy fell four sen to RM1.79.

Sinotop was the most actively traded counter with 8.49 million shares done. The stock fell 4.5 sen to 26.5 sen. Other actives included Ranhill, E&O, Scomi, Timecom, Nylex and Landmarks.

Petronas Gas was the top gainer and added 35 sen to RM9.90. Lafarge was up eight sen to RM6.78, while C I Holdings six sen to RM3.04. Asia File, Boustead, Kulim and Jerneh up five sen each to RM4.38, RM3.94, RM7.95 and RM3.21 respectively, while Ranhill was up 4.5 sen to 81 sen.