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The
Star, 3 May 2007
Scientex may lift Vietnam output Its division ponders higher production to tap new markets By SUSAN TAM HO CHI MINH CITY: Scientex Inc Bhd’s polymer division may consider boosting production of automotive tufted carpets at its Vietnam plant to 30,000 sets a month to tap new markets. Scientex Polymer Sdn Bhd executive director and group company secretary Gary Tan said the Vietnam plant was running at 65% to 75%, producing some 10,000 sets a month. “The plant caters to Japan and Australia. Australia is the latest market to receive our products,” Tan told StarBiz. He said the company was working on getting the ISO/TS16949 technical certification, which would allow it to expand its export markets. Tan said the Vietnam plant, called Scientex Polymer (VN) Co Ltd hoped to get the certification by end-November. The ISO/TS16949 certification aligns the US, German, French and Italian automotive quality system standards within the global motor industry.
“As demand from the Malaysian automotive sector is currently slow, we are interested in exporting to countries other than our current clients,” Tan said. Scientex makes and distributes polypropylene material used in carpets for customers such as Honda, Nissan, Proton, Naza, Ford, Hyundai and Mazda. Tan said the firm had gained from its operational base in Vietnam owing to the low labour cost and the various government incentives. “Producing these carpets is labour-intensive and we require many workers to sew the different designs provided by our clients,'' he said. Each worker was paid some US$60 a month, including allowances for meals and travel, he said, adding that the Vietnamese plant was set up in 1995 with an investment of about US$8mil. Tan also said the company's factory in Shah Alam produced 8,000 to 9,000 sets of carpets a month for its customers in Malaysia and Singapore. Each set consists of five pieces, as required by the automotive customers. He said the polymer division contributed about 12% to group sales and net profit, and he expected the figure to increase depending on the demand from the motor sector. |
