FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
14
We have also successfully set up stepper motor assembly
unit at our plant in India and secured our first order
for stepper motors in FY2015. In Zhuhai, we are in the
process of setting up our facility for the production of
oil filtration products. These proprietary oil filters are
used in automotive transmission applications and are
currently being produced at our facility in Europe. With
the manufacturing facility in Zhuhai, we will be able to
support local sales and manufacturing for our oil filtration
products in the China market.
The IMS Division will continue to make appropriate
capital investments to increase automation for better
quality, operational and cost efficiencies, as well as to
raise production capacity to meet anticipated demand. To
better serve our automotive customers, the division is also
exploring the feasibility of setting up new sites which will
improve our proximity and enhance our local support to
customers.
Operational Initiatives
In FY2015, the IMS Division witnessed a number of
positive developments that will support its growth in 2016
and beyond.
Our sites in Switzerland, Thailand, Johor and Indonesia
have now been qualified as suppliers by our key
automotive customers. In Thailand, we will expand into
automotive manufacturing. This will allow us to diversify
and reduce our dependence on the camera components
and sub-assembly manufacturing business which has been
declining. Similarly, in Indonesia, the new automotive
business will complement and diversify our current base
of consumer and industrial electronics customers there.
Following the implementation of quality improvement
programmes, our Penang plant has made headway in
resolving quality issues progressively and increasing its
operational efficiency.
Our Penang and Kuala Lumpur manufacturing sites have
also made progress in broadening our customer base. The
Penang plant has commenced mass production for two
new automotive projects that were awarded two years
ago, and expects to start manufacturing activities for a
new customer in 2016. Our operations in Kuala Lumpur
won a number of automotive projects in FY2015 which
are expected to move into mass production phase from
the second half of 2016.
Our IMS Division continued to win accolades from our
customers in 2015. We were awarded the “Supplier
Quality Excellence Award” and the “Excellent Supplier
Award” by our automotive customers.
BUSINESS REVIEW
(CONT’D)
