THE bulk of LKT Industrial Bhd's projected revenue in the next three to five years will come from its semiconductor equipment division known as Meerkat.

The division's focus is on technology equipment and instrument integration, providing services and solutions to original equipment manufacturers operating across a wide range of industries.

LKT executive chairman and chief executive officer Dato' Vincent Loh Khee Lian said of the RM600 million projected in group revenue for the next three to five years, about RM500 million should be generated by Meerkat.

Construction on the group's 9th plant costing RM19 million began in March last year, on a 1.36 ha site in Penang's Bayan Lepas Free Industrial Zone.

"Upon its projected completion in the middle of this year, the plant will house the business activities of Meerkat and its instrument integration arm Meerkat Integrator Sdn Bhd," Low said after the company's annual shareholders' meeting in Penang yesterday.

Meerkat's customers currently span across Europe, US and Japan.

Founded in 1948 as a foundry manufacturing metal products, LKT has diversified its range of products and expanded its operations across Malaysia, Singapore and Thailand with exports throughout the world.

The company - which is headquartered in Penang and primarily involved in design and manufacture of automated equipment has - nine plants, seven in Penang and one each in Kulim, Kedah and Ayutthaya in Thailand.

For its 2006 fiscal year ended 31 December, LKT registered a revenue of RM274 million, an increase of 28 per cent compared with RM214 million in the previous year.

The group posted a slight increase in profit after tax from RM25 million in 2005 to RM25.2 million last year.

Source: NST_BizNews_9th May 2007