MELAKA: DRB-HICOM Bhd’s aerospace and defence development arm, Composites Technology Research Malaysia (CTRM), will continue to grow at a robust rate due to higher demand for narrow body aircraft from budget airlines.
Group managing director Datuk Seri Syed Faisal Albar said this was backed by an order book of RM9.5 billion for the next eight years.
“CTRM supplies parts to key airline industry players, including Boeing, Airbus and Spirit, as well as defence players,” he told reporters at a briefing on DRB Hicom’s performance, here yesterday.
He said despite Boeing’s current issues involving the 737 Max 8 fleet, CTRM is unaffected as the former only contributed to 1.5 per cent of revenue.
“There might be a shift in orders, but I believe, we will continue to perform,” he said.
Syed Faisal said despite CTRM being the sole global player in providing airplane parts such as the wing, tail plane and nacelle, the profit margin was low.
The company recorded total revenue of RM922.8 million as of financial year 2017 ending March 2018 and aimed to achieve revenue of RM1 billion.
“The aerospace industry is highly regulated and this is the reason why there are not many players in it. Even in Malaysia, not many know what we do,” Syed Faisal said.
CTRM recently invested RM140 million to expand its Melaka plant and increase production capacity.
“With this (the expansion) we will also expand our workforce and as of now, 99 per cent of employees are locals,” Syed Faisal said.