By BERNAMA
CTRM Aero Composites Sdn Bhd, a member ofDRB-Hicom Bhd, expects to achieve up to 20 per cent revenue growth this year from RM680 million last year, riding on the aerospace industry’s growth.
DRB-Hicom Automotive Distribution and Manufacturing chief operating officer (COO) Radzaif Mohamed said the industry has grown at 5% per annum, which subsequently drives the demand for composite components.
“CTRM’s activities will be one of our main focus areas as the company has managed to grow our revenue stream and expand our potential in the aerospace industry,” he said.
He told reporters this after a signing ceremony between CTRM and US-based UTC Aerospace System (UTAS) for the contract extension for the supply of composite components of three work packages.
The signatories were CTRM COO Che Akhma Ismail and UTAS Aerostructures president Marc Duvall, and witnessed by the Deputy Minister of International Trade and Industry Ahmad Maslan.
UTAS awarded the first contract to CTRM in 2003 for the supply of fan cowls while the letter of intent for the contract extension was exchanged during the 2015 Langkawi International Maritime and Aerospace Exhibition.
From the contract extension, CTRM expects additional average annual income of RM218 million from 2016 until 2030, and currently, there are a total of seven work packages off-loaded at CTRM with a total value of RM4.2 billion from UTAS alone.
The production of the additional three work packages namely composite fan cowls, inlet cowl panels and thrust reversers would be done at its manufacturing plant in Batu Berendam, Melaka.
On capital expenditure, Che Akhma said CTRM had allocated RM300 million for the 2014-2018 period to set up new facilities and employ skilled workers to accommodate the growing demand from the aerospace industry.
Che Akhma said CTRM currently has 12 autoclaves and given the industry’s growth rate, it would have to acquire two autoclaves a year until 2018.
He also noted that the exports segment of its business managed to put CTRM in an indirect natural hedge position against the impact of foreign exchange fluctuations from its imports of raw materials such as carbon composite and glass.
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