Connect to Invest RM20 Mln to Boost Capacity in China

KUALA LUMPUR, Jan 4 (Bernama) -- ConnectCounty Holdings Bhd (Connect) plans to invest close to RM20 million (around US$4.63 million) to expand its manufacturing capacity in China. The facility manufactures interconnect products such as custom cable assemblies, wire harnesses, USB cables, audio and video cables, computer peripheral cables, custom cables and flat cable assemblies. In a statement Monday, Connect said it also plans to expand its workforce in China by close to 40 per cent by the end of 2016. "Connect is well-positioned to tap this industry uptrend because of our experience and expertise as well as the positive headways we are making to expand our capacity while penetrating new markets and industries," Executive Director Ang Chuang Juay said. Connect pointed out that global sales of interconnects reached about US$190 billion in 2014, an increase of 8.3 per cent over the previous year. It said Infobusiness Research and Consulting Sdn Bhd's data also revealed that global sales were anticipated to expand by a compound annual growth rate (CAGR) of 6.1 per cent between 2015 and 2020, reaching US$266.4 billion. The company is expected to benefit from its status as an approved vendor to Technicolour Cisco, the global market leader with RM14 billion (around US$3.24 billion) in annual sales and 60 million devices shipped annually. Ang said the interconnect industry is growing rapidly in tandem with the growing demand for modern consumer electronics as well as the development and application of Internet of Things (IoT) technologies. "The automotive sector is also causing an uptick in demand for interconnect devices. "In fact, it has become the biggest end-product market for interconnects as the devices are used in various applications, ranging from lighting to safety control," he said. (US$1=RM4.316) -- BERNAMA