ICP adds new plant line

BY LEE KAR YEAN

ENCOURAGED by the overseas demand for its spun concrete piles, Industrial Concrete Products Bhd (ICP) will invest RM40mil in a third production line at its existing plant in Lumut, Perak. 

Chief executive officer and managing director Mah Teck Oon said the group planned to supply the concrete piles to a few major port development projects in the region. 

“The new line will produce 200,000 tonnes of spun concrete piles by June next year, which will increase our annual production capacity to 1.2 million tonnes. 

“We see an increase in demand for large diameter long piles, with so many ongoing port expansion projects in Malaysia as well as in the region,” he said after the group's AGM and EGM in Petaling Jaya yesterday. 

ICP, which exports to Yemen, Iran and Bangladesh, is targeting the construction sector in India and Indonesia this year. 

Mah said the group would intensify efforts to promote the use of the concrete piles in the construction sector in India, and expected to penetrate the market soon based on the strength and reputation of its parent company, IJM Corp Bhd, which had successfully carried out infrastructure projects in that country.  

On the group's concrete piles plant in China, he said it would cater to a niche market for bigger sized and longer piles used in the construction of ports. 

“We are considering setting up another plant in China soon, perhaps in the northern region, to cater to the vast Chinese market,” he added.  

On the country's lacklustre construction sector, Mah said the group had secured the contract to supply concrete piles to the second phase of the Port of Tanjung Pelepas project. It is also bidding for the construction of the Jimah power plant project in Pahang. 

The ICP group, which has changed its financial year-end from June 30 to March 31, recorded a pre-tax profit of RM31.2mil on the back of RM259mil revenue for the nine months ended March 31.  

Pre-tax profit and revenue for the 12 months ended June 30, 2004, stood at RM20.5mil and RM230.7mil respectively. 

Mah attributed the marked improvement to the substantial increase in spun concrete piles exports and the good performance of the company's rubber carpet producing subsidiary, Expedient Resources Sdn Bhd. 

“We are the biggest producer of spun concrete piles in Malaysia currently with a market share of 70%,” he added. 

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