- Achieved Group-wide cost reduction of RM134 million in 2020.
- Introduced a strategic framework in January 2021 to explore opportunities in the mobility space and its adjacencies.
KUALA LUMPUR, May 20 (Bernama) -- The 39th Annual General Meeting (“AGM”) of UMW Holdings Berhad was held virtually due to the COVID-19 pandemic. At the AGM today, the Group reflected on its key achievements in 2020 and communicated its plans for 2021 and beyond, through its new strategic framework which will further strengthen the Group and continue to deliver long-term value to its stakeholders.
UMW Holdings Berhad President and Group CEO, Dato’ Ahmad Fuaad Kenali said, “In 2020, we have proven that the Group was able to recover and deliver solid results despite the challenging operating environment caused by the pandemic. The Group continues to strengthen in the domestic automotive industry, with a market share of 52.8% in 2020, the highest in its history. On the other hand, our cost optimisation efforts resulted in a Group-wide cost reduction of RM134 million in 2020 and we will continue to drive further cost-saving initiatives through continuous business process improvements. Overall, the Group’s performance for FY2020 exceeded our expectations which was driven mainly by the sales tax waiver given under the government’s stimulus package.”
In the Automotive segment, both UMW Toyota Motor (“UMWT”) and Perodua exceeded their revised sales targets for 2020 despite the disruptions caused by the COVID-19 pandemic. For 2021, UMWT targets to sell 62,000 units, 4.5% higher than the 59,320 units sold last year. On the other hand, Perodua is projecting 240,000 units this year, 9% higher than the 220,163 units delivered in 2020. New model launches, extension of sales tax exemption until 30 June 2021 and the low interest rate environment are expected to continue to drive demand and sales.
The Equipment segment continues to diversify its overall product offering with the inclusion of Kohler industrial generators that serve numerous market segments in 2020. In addition, it was also appointed as the preferred distributor for collaborative robot (Cobot) by Denmark’s leading robot maker, Universal Robots A/S thereby expanding its offering in automation and robotics. As part of the segment’s digitalisation efforts, e-CARA app, an all-in-one application for forklift solutions and services was launched. Moving forward, the Industrial Equipment sub-segment will push ahead with the development of flexible rental arrangements and focus on automation and digitalisation. Meanwhile, the Heavy Equipment sub-segment will work closely with its principals to secure new businesses in Malaysia and its overseas operations. The improving economic activities are also expected to increase demand for equipment.
The Manufacturing & Engineering segment saw the completion of Kayaba plant expansion and modernisation in 2020, which provides for an additional 20% capacity and features IR4.0 capabilities. Meanwhile, UMW Aerospace had commenced production of fan cases for Trent 7000 engines used in Airbus A330neo aircrafts and made its maiden delivery in October 2020.
The segment is expected to benefit from the improving sales of its auto components products in line with the expanded capacity gained from its new plant expansion. The Lubricants sub-segment will be expanding further into the commercial and industrial lubricants space in anticipation of increased demand especially from the ASEAN region. Despite the slowdown in the aviation sector, UMW Aerospace is still expected to receive firm orders from Rolls-Royce and will be looking forward to a recovery as the aviation industry recovers.
The Group also remains focused in unlocking and realising the value of its long-held landbank in Serendah. Developed as UMW High Value Manufacturing Park, it is both a managed and gated & guarded industrial park. The development offers investors customised factory spaces for high technology sectors such as aerospace, automotive, fast-moving consumer goods and other industrial and commercial sectors. Also, certain UMW operations in Shah Alam will be relocated to Serendah by the end of next year.
Dato’ Fuaad further added, “In January this year, we have introduced the CREST@2021 strategic framework. This initiative will drive our aspirations to seize the opportunities available in the mobility space and its adjacencies throughout the Group’s various businesses. I am excited about our prospects with CREST@2021 as the new strategic framework for the UMW Group to drive sustainable future growth of the Group.”
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