Diversification to mould DENKO Industrial's sustained growth
Looking to boost sales and market competitiveness, Malaysian plastic component manufacturer DENKO Industrial is strengthening its foothold in Indonesia. Through wholly owned subsidiary Winsheng Plastic and Tooling Industry, DENKO operates a sophisticated plastic injection moulding and mould fabrication factory in Jakarta to satisfy increasing volume demand. Incorporated in May last year, the subsidiary caters to DENKO's existing multinational customers who have relocated their operations to Indonesia.
"Indonesia is our first step to extend our footprint abroad," says Tan Chen Wei, group CEO. "We intend to duplicate the strength of our operations in Malaysia and in Indonesia, which we consider our future growth market. This is in line with our diversification initiatives aimed at sustaining profitability."
In the industry for more than 25 years, DENKO is a renowned best-in-class manufacturer of plastic injection mouldings and high-precision plastic components. Operating through its subsidiaries, the Bursa Malaysia-listed investment holding company also engages in the wholesale and retail of food and consumer goods. Its supply network reaches Southeast Asia, Japan, China, Australia, New Zealand, Europe and the United States.
DENKO caters to a diverse customer base comprising multinationals in the automotive, consumer electronics, information technology and industrial product sectors. Known for keeping its clients ahead of the curve, DENKO has gained the trust of such leading names as Dyson, JVCKENWOOD, Pioneer, Panasonic and Schneider Electric.
Apart from its recent venture into printed circuit board assembly, DENKO is in negotiations with certain clients to manufacture final products as it seeks to become a turnkey contractor. By consolidating production under one roof, DENKO reduces its customers' costs by minimising packaging, shipping and inventory maintenance outlays.
"With our state-of-the-art tool-making facilities and collaborative approach, we are able to deliver products that our clients visualise at a competitive cost," Tan says. "Not only do we bring in technical know-how, we provide just-in-time moulding solutions and practical tools that help our clients realise production excellence."