FBK AUTOMOTIVE TO EXPAND FOOTHOLD IN EASTERN EUROPE

By Christine Lim

KUALA LUMPUR, May 27 (Bernama) -– FBK Automotive Components (Malaysia) Sdn
Bhd, one of the biggest vehicle brake component manufacturers in Asean, plans to
expand foothold in the Eastern European market.

Director Tah Poh Han said the company ventured into Poland last year and was
now looking at expanding into the entire region.

"Our business from Europe last month increased by around 35 per cent.

"The debt crisis in Europe is an opportunity for us as Malaysian products
which are considered more price competitive, will be more attractive,” he told
Bernama in an interview.

He said FBK had also started exporting to Italy, Holland, United Kingdom
and Portugal.

"We are the biggest company with the European certification in Asean," Tah
said, adding that FBK had invested almost RM1 million to obtain the European
certification for more than 100 items to be exported into the European market.

"The government, through its trade agencies, has also subsidised a portion
of the cost to obtain the European certification," he said.

With two factories located in China and Selangor, FBK produces more than 10
million brake parts annually. It operates using skills, machinery, quality
control, and research and development that are based on Japanese technology.

"This technology is mainly gained from a previous joint venture with one of
Japan's brake makers," he said.

Tah said 70 per cent of FBK's turnover was from exports to over 48
countries.

"Twenty-two per cent our turnover is from the Malaysian market while eight
per cent of the remaining turnover is from the original equipment manufacturer
market, namely Proton.

"Our products which are sold to Japan are mainly for re-export to other
countries," he said.

For this year, he said, the company's turnover was projected to exceed RM44
million.

"We also hope to expand into the Japanese market," he said. Recently, FBK
participated in the largest automotive exhibition and technology showcase in
Japan.

He said the United States would not be a lucrative market due to severe
competition from cheaper products from China.

To meet the company's expanding market demand, Tah said FBK was looking at
increasing its production capacity by acquiring factories in China.

"It will cost us an estimated US$5 million to US$6 million to acquire a
factory in China," he added.

-– BERNAMA