ES CERAMICS Technology Bhd, a manufacturer of ceramic formers for the rubber glove industry, has roped in two seasoned property developers in its quest to venture outside the realm of its core business.
The duo – Datuk Seri Yeong Joo Hock and Datuk Tan Chee Who – were appointed as the company’s new directors today.
Yeong who has been involved in various property development projects such as Ros Merah Square, Delta Square, Puteri Square, Laguna Heights and Fullerton was appointed as the group’s new executive director.
Meanwhile, Tan who is a veteran in the property development and management business will assume the role of ES Ceramic’s independent director.
“I’m humbled to be given the opportunity to take a leading role at ES Ceramics which has proven itself to be a strong and resilient company,” commented Yeong of his appointment.
“I believe that the appointment of Tan and myself will help to bring fresh insights and new ideas on how to bring ES Ceramics forward as the group plans to shift away from the reliance on its ceramic mould business.”
The appointment of Yeong and Tan is deemed timely as the group looks ahead in the post-COVID world.
One of the beneficiaries of the COVID-19 pandemic, the management of ES Ceramics is looking at expansion and diversification into high-growth business to sustain its growth momentum going forward.
As of end-August, ES Ceramics has a strong cash position at RM68.6 mil which is more than three times its cash position two years ago given the group recorded strong earnings growth during the pandemic in tandem with surging glove demand.
The strong growth puts ES Ceramics in a solid position to diversify away from the reliance on its core business by expanding into an endeavor with strong growth prospect, according to Yeong.
“The strong earnings and cash-rich position put ES Ceramics in a good position to expand beyond just a ceramic mould maker for the gloves industry,” he justified. “We’ve started from a humble beginning since 1998 and the time is right for the group to expand our business.”
Aside from the group’s diversification strategy, ES Ceramics will also invest into its existing business by building new factories to increase its production lines.
The management believes that the two-pronged strategies to expand its existing production lines and diversify into other high growth business will help to sustain the group’s growth momentum in the near-term while paving way for a sustained long-term growth.
At the close of trading today, ES Ceramics was down 2.5 sen or 5.21% to 45.5. sen with 9.54 million shares traded, thus valuing the company at RM230 mil. – Oct 20, 2021
