Econframe Berhad, a dominant player in residential aluminium door frames, has taken a bold step to expand its reach within Malaysia’s aluminium sector. Through a strategic acquisition, they’ve secured a controlling stake in Lee & Yong Aluminium Sdn. Bhd. (Lee & Yong), a distinguished manufacturer of aluminium window frames and a leader in building façade solutions.
Mr Lim Chin Horng, the Managing Director of Econframe Berhad.
“Our business expansion is primarily driven by our confidence in the positive outlook of the property market which is rebounding post-Covid, and to complement our existing core business to provide a one-stop, total solution for our partners,” commented Lim Chin Horng, the Managing Director of Econframe Berhad.
For RM18.2 million in January 2023, Econframe acquired a substantial 65.0% share in Lee & Yong, including land assets – which marks more than just a product line extension for Econframe. It’s a calculated move to tap into lucrative commercial and government sectors, leveraging Lee & Yong’s impressive 30-year track record of contributing to major projects in Kelantan and Terengganu.
Fueling ambitious growth plans, Lee & Yong has embarked on a significant RM20 million expansion initiative. This strategic investment involves acquiring a strategically located 2.13-acre plot adjacent to their existing facility. The expansion is projected to double Lee & Yong’s production capacity, effectively positioning them to capture and fulfil a significantly larger volume of orders.
Manufacturing site of Lee & Yong Aluminium Sdn. Bhd.
Lee Yong’s founder, Mr. Yong, remains a driving influence behind the company’s success. With a retained ownership stake of 35%, his continued leadership plays a pivotal role in securing projects with a minimum net margin of 15%. The company’s focus on profitability has yielded impressive results. As of February 2024, the company boasts a robust order book exceeding RM100 million, with projects scheduled for completion over the next two years.
This strategic alliance between Econframe and Lee & Yong illustrates a future rich in innovation and growth for the Malaysian aluminium industry. However, the road ahead isn’t without its obstacles. These companies must adeptly navigate through potential hazards like market fluctuations, escalating aluminium costs, and the crucial need to enhance the expanded production capacity.
With proactive planning and an unwavering commitment to excellence, both companies are poised to navigate these challenges and sustain their path of advancement within Malaysia’s aluminium sector.
Source: here
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