07
FRENCKEN GROUP LIMITED
ANNUAL REPORT 2014
CHAIRMAN’S STATEMENT
(CONT’D)
In tandem with the Group’s plans to expand sales, both
divisions will also be looking to mitigate the impact of pricing
and cost pressures on profit margins by implementing a
number of measures aimed at reducing costs, as well as
improving operational efficiency and productivity.
Appreciation
In closing, I would like to thank my fellow directors for their
valuable contributions. On behalf of the Board, I would like
to express our appreciation to the management and staff
for their contributions and commitment. We would also like
to extend a warm welcome to Dato’ Gooi Soon Chai who
joins our Group as Non-Independent, Non-Executive Director.
Dato’ Gooi is a veteran in the global technology industry
and has a wealth of experience and network of contacts
that will prove beneficial to our Group. Last but not least,
we extend our sincere thanks and appreciation to our valued
customers, shareholders, business partners and suppliers for
their continued support and patronage to Frencken Group.
Tan Sri Larry Low Hock Peng
Non-Executive and Non-Independent Chairman
Over the last few years, the division has been making
strong headway in Asia, particularly China which is
becoming a key growth market for high technology capital
equipment. With plants located in Wuxi and Southeast
Asia, the Mechatronics Division has capabilities to provide
local-to-local support to improve customers’ time-to-
market which places it in a strong position to capture
business opportunities.
The Mechatronics Division is also continuing to pursue its
ambitions of developing Original Design Manufacturer
(ODM) products for the medical segment, based on the
proprietary knowledge that it has accumulated over the
years. While the Group does not expect this strategic
initiative to yield immediate financial benefits, we believe
the development of ODM products will enable the division
to move up the value chain and strengthen its business
model in the long term.
With its sharper focus on the automotive business, the
IMS Division will be looking to strengthen its competitive
position by leveraging its network of production bases
in the region to better tap the demand from key global
automotive markets, particularly the growth markets of
China, India and Southeast Asia. To expand the scale of
its business, the division is in the process of progressively
developing integrated capabilities at its factories in China,
India, Indonesia and Thailand. At the same time, it is also
broadening its range of automotive products, such as the
proprietary high-quality oil filtration products for engine
and transmission applications, which would improve its
share of the customer’s wallet.
