Tee Kim Chin and Alex Miranda Juntado acquired the entire equity interest in Toyoplas EMS Manufacturing (M) Sdn Bhd and changed its name to Cape EMS Manufacturing (M) Sdn Bhd in 2013.
Subsequent to the acquisition, our Company continued to provide electronics manufacturing service ("EMS") for industrial electronic products mainly wireless communication equipment for a customer (“Old EMS Business Unit”) from a rented factory located in Johor.
In 2017, our Company divested the Old EMS Business to a third party.
In 2018, our Company entered into a sale and purchase agreement for the acquisition of our factory located in Senai ("Senai 227 Factory"), for RM22.0 million to provide EMS for wireless communication equipment manufacturer from the USA. The acquisition was completed in 2020.
Prior to the completion of the acquisition, we leased the Senai 227 Factory between 2019 and 2020 to commence our EMS for box build products.
Since 2019, we have been providing EMS to the wireless communication equipment manufacturer from the USA for various models of products. We are qualified by this manufacturer as their EMS provider.
We continued to expand our customer portfolio to offer our EMS for new product applications and industries between 2019 and 2020 including the following:
expanded our industrial electronic products portfolio by securing various orders for provision of EMS for smart utility devices for a customer from Japan in 2019, and POS terminals, digital vending machines and portable printer power desks in 2020; and
expanded into consumer electronic products where we secured orders for provision of EMS for cordless vacuum cleaners and electronic cigarettes in 2019 and 2020 respectively. We delivered our first shipment for both products to the USA in 2019 and 2020 respectively.
As part of our EMS expansion plans, we expanded our production facilities between 2020 and 2021 as follows:
in 2021, we extended an additional 74,329 sq ft of floor space at our Senai 227 Factory to cater for production expansion;
between 2020 and 2021, we purchased machinery and equipment as well as cleanroom facilities for the EMS of electronics cigarettes including automated production lines;
between 2020 and 2021, we purchased and installed 2 Surface Mount Technology (SMT) lines to support our customers' new product introduction process. We commenced trial run and pilot production in 2021.
In January 2020, our Company acquired the entire equity interest of the following companies as part of our group reorganization exercise:
Cape Manufacturing (M) Sdn Bhd, which is principally involved in aluminium die cast manufacturing and providing EMS; and
Cape Holdings (S) Pte Ltd, which is principally involved in supply of electronic products and related activities.
The main rationale for the acquisitions is to complement our EMS business to provide supporting products and services to our customers.
In 2021, our Company acquired 2 pieces of lands namely PLO 226B and PLO 227B.