Tecnic ... May10

Tecnic Group Bhd, a plastic products manufacturer, will continue to rely on a business model that helped turn it around in 2005.

The company, formerly known as STS Tecnic Bhd, was a loss-making company before a new management took over in 2004 and implemented an already existing business model.

The new management introduced electrical and electronics as well as automotive sectors as part of the turnaround plan.

Tecnic now boasts five core segments including medical, industrial and consumer packaging as well as oil and gas.
The company returned to the black in 2005 from a net loss of RM6.3mil in 2004 and recently posted a net profit RM13.1mil in the previous financial year ended Dec 31, up 52% from previous corresponding year.

Revenue was at RM137.5mil, up 25.8% for the period under review and the company which now has zero gearing, has also proposed a final dividend of 16 sen per share.
As of Dec 31, 2009 its cash and its equivalents stood at RM10.8mil.

Among its notable customers are Panasonic, Samsung, Sony, Unilever, Cadbury, Carlsberg, Shell, Petronas, Exxon Mobil and BP Castrol.

Tecnic’s strength in plastic moulding was an added advantage over the other players, armed with latest tooling technology such as overmoulding, double-injection, multi cavities, gas assist injection and electric moulding just to name a few. This has enable it to produce high gloss, precision and rigorous quality products.

Its capital expenditure (capex) this year will be around RM6mil to RM8mil focusing on technology upgrading. Its capex this year is lower than 2008 and 2009 that stood at RM13.1mil and RM10.2mil respectively as the company spent a lot on expansion of its factory expansion including land acquisition in the last two years.

Currently, the company is utilising between 65% and 70% of its total facilities’ capacity.