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PR Newswire
30-01-2011, 01:18 PM
I used to own quite a fair bit of this one. Cut half and ploughed to ARA.
They have a very sensible and responsible management, unfortunately
it is not a fast growth area and always pump $ into capex. Tough biz...
Since starting our CMA operations in the USA, our focus has been on building a foundation for growth with only
minimal capex spending. With this business on a more stable footing now, the next phase is to upgrade and
improve our manufacturing capability. As such, we have placed an order for a new automated line of equipment
in December 2010. At a cost of nearly S$3 million, this is the largest single investment on equpment in theGroup’s history.
While there is always the possibility that unforseen problems may occur, we have worked hard to
understand the engineering issues and minimize those risks. In addition to extensive studies and reviews, our
agreement with the key equipment supplier clearly defines mutual performance expectations. The
agreement also includes, with much appreciation to our supplier, a schedule of staggered, interest-free payments which we
believe should allow us to finance the investment without borrowing. With this state-of-the-art manufacturing
system to be installed at the end of FY2011, we intend to develope a completely new way of manufacturing
complex parts in a fully-automated, 24/7 environment. Besides the USA, we intend to expand this platform to one
of the Group’s facilities in Asia eventually. Ultimately, our aim is to offer our customers access to world-class
machining facilities in the USA and Asia – “a global machining solutionâ€.
They have a very sensible and responsible management, unfortunately
it is not a fast growth area and always pump $ into capex. Tough biz...
Since starting our CMA operations in the USA, our focus has been on building a foundation for growth with only
minimal capex spending. With this business on a more stable footing now, the next phase is to upgrade and
improve our manufacturing capability. As such, we have placed an order for a new automated line of equipment
in December 2010. At a cost of nearly S$3 million, this is the largest single investment on equpment in theGroup’s history.
While there is always the possibility that unforseen problems may occur, we have worked hard to
understand the engineering issues and minimize those risks. In addition to extensive studies and reviews, our
agreement with the key equipment supplier clearly defines mutual performance expectations. The
agreement also includes, with much appreciation to our supplier, a schedule of staggered, interest-free payments which we
believe should allow us to finance the investment without borrowing. With this state-of-the-art manufacturing
system to be installed at the end of FY2011, we intend to develope a completely new way of manufacturing
complex parts in a fully-automated, 24/7 environment. Besides the USA, we intend to expand this platform to one
of the Group’s facilities in Asia eventually. Ultimately, our aim is to offer our customers access to world-class
machining facilities in the USA and Asia – “a global machining solutionâ€.