Memtech eyes car industry for growth

Singapore

ELECTRONICS components maker Memtech International has added two car giants to its clientele as it continues to shift its gears towards the car industry.

With the inclusion of electric car maker Tesla and car parts producer Faurecia, SGX mainboard-listed Memtech aims to increase the revenue share of the car industry - currently at 40 per cent - to 50 per cent by 2017.

Memtech supplies plastic parts such as battery packs, connector holders and electronic control units for Tesla, while making plastic components for Faurecia's climate control systems.

"We aim to be a strategic partner or core supplier for our customers in this space," said Chuang Wen Fu, executive chairman of Memtech, in an interview published on SGX's blog My Gateway kopi-C.

The company, which was founded in the late 1990s, started out manufacturing keypads for mobile phones. By 2004, the popularity of mobile phones helped Memtech take in US$40 million - up from just US$2 million two years before.

But with the advent of touchscreens in 2011, Memtech quickly saw its fortunes vaporise. It then decided to change its gears towards the car industry instead, producing keypads for car components.

This reversed the tide for Memtech. In 2013, it saw revenues and profits rebound.

Mr Chuang noted that there is now plenty of room for the company to develop as China's car market grows.