LKT Industrial Bhd expects its Meerkat division to be the main driver of growth for the group in the near future, said its chairman and chief executive officer Datuk Vincent Loh Khee Lian.

Its Meerkat division, which reflects a fast, agile and easy-to-adapt strategy, comprises its subsidiaries Meerkat Technologies Sdn Bhd and Meerkat Integrator Sdn Bhd.

Loh said the division contributed between 45% and 55% to group revenue of RM274 million in the last financial year ended Dec 31, 2006.

He expects the division to achieve annual revenue of RM500 million within the next three to five years.

“We expect the group’s overall annual revenue to be about RM600 million within the same time frame,” he told reporters after the company’s AGM in Penang on May 9.

The division is focussed on technology and equipment and instrument integration, providing services and solutions to original equipment manufacturers (OEM) operating in the semiconductor industry.

It was developed following the company’s restructuring exercise last year to set it apart from the traditional activities of the company.

LKT completed its eighth plant, which is the sixth in Penang, last August, which was built at a cost of RM15 million. The plant, with a built-up area of 90,000 sq ft, is home to Meerkat Technologies.

It also expects to complete the construction of its ninth plant costing RM19 million by mid-year. The new plant, built on a 1.4ha site, will be Meerkat Integrator's new premises.

“When both plants are operational, we will see a significant increase in headcount, in addition to our present 700,” Loh added.

He said LKT was targeting companies from developed countries such as the United States and Japan as well as those in Europe, to expand its OEM business via outsourcing activities.

“We are looking at forming partnerships with companies from such countries who are interested in win-win situations for them and for us,” he said, and did not rule out acquiring companies in the near future.


Source: The Edge Daily_9th May 2007