Shah Alam, June 14, 2011 – MBM Resources Berhad (MBMR) is investing some RM250 million in capital expenditure over the next five years in an aggressive expansion plan to transform the group into one of the key automotive players in Malaysia and the region.
The non-equity capital expenditure will primarily be utilised to expand its manufacturing infrastructure, enhance its nationwide retail and service network, and realise the value of its prime assets.
In line with its aspiration of becoming a complete automotive group, MBMR is investing in new manufacturing facilities to cater for product line extensions and equip itself with vehicle assembly capabilities.
It is also enhancing its substantial motor retail and service network across the country with new 3S and one-stop body and paint centres to cater to the needs of its growing customer base.
Where viable, the Group will enter into joint ventures with experienced partners to re-develop strategically located assets to maximise their commercial value.
MBMR enjoyed a breakthrough year in 2010 when revenue jumped by 39 per cent to RM1.53 billion while profit before tax more than doubled to RM172 million compared to the year before, supported by significantly improved contributions from all its operations.
Speaking to the media after MBMR’s 17th annual general meeting, managing director, Looi Kok Loon, said that the record performance would serve as a launch pad to propel the group into a new era of growth.
“2010 was a banner year for us as we reaped the benefits of our multi-brand strategy. Although our 2Q11 performance is affected by the Japan earthquake, we are confident of achieving continued growth this year with an improved 2H11, mainly due to the earlier-than-expected supply recovery which will provide the base for the launch of the new Myvi,†he said.
The impact of the launch of the new Myvi will be significant as MBMR owns an effective 23.6 per cent stake in Perodua. MBMR’s subsidiary, DMM Sales Sdn Bhd, is the largest independent Perodua dealer in Malaysia with 17 showrooms and 12 service centres. Another subsidiary, Oriental Metal Industries (M) Sdn Bhd, is a major supplier of wheels to Perodua.
“By 2015, we hope to achieve our objective of becoming one of the leading and most complete automotive groups in Malaysia with a full spectrum of capabilities that include manufacturing and assembly, distribution, retail and dealerships, parts and accessories, body and paint repair and customer services,†Looi added.
MBMR, which has been synonymous with the Daihatsu brand since its inception, has evolved into a diverse automotive group that represents some of the biggest international brands in Malaysia. They include commercial vehicle brands Daihatsu and Hino; passenger car brands Perodua, Volvo, Volkswagen and Mitsubishi; and sports tuning brands, ABT and Heico Sportiv.
It is the leader in every market segment it competes in, with products that range from light, medium and heavy duty trucks and buses to entry-level compact cars and luxury sports utility vehicles.
