YHI – Now is the ‘right time’ for greater OEM sector involvement
The newly-released annual report from YHI International states the Singapore-based wheel manufacturer and automotive components distributor is embarking on a “new exciting era.” Specifically, the company has begun a five-year expansion plan to grow its manufacturing and distribution segments and achieve sales of S$1 billion (£494 million) by the 2015 financial year.
“The group’s five-year expansion plan (from FY2011 to FY2015) will see us increase our production capacity of an additional five million alloy rims through expansion of our existing manufacturing facilities in China, Taiwan and Malaysia,” elaborated executive chairman and group managing director Richard (Tian Hoe) Tay. “We hope to capitalise on opportunities that have arisen as demands from the China and ASEAN markets are expected to grow exponentially. We feel that it is the right time to enter the original equipment market in a more significant manner, targeting the China and Malaysia OEM markets for a start. We plan to complete installation of our first one million OEM capacity in Shanghai by third quarter of 2011.” At present YHI operates two alloy wheel manufacturing plants in China – in Shanghai and Suzhou – plus plants in Taiwan and Malaysia. The company’s alloy wheel portfolio includes the Enkei, OZ, Konig and Advanti Racing brands; the last of which now serves as an official partner to the Scuderia Toro Rosso Formula One team.
“For our distribution business, we will put into place a new marketing strategy which will involve implementing multi-brand, multi-category and multi-product sales initiatives for all of our sales offices and appointed distributors worldwide,” Tay continued. Tyre brands distributed by YHI in various markets include Yokohama, Nexen, Nankang, Pirelli and the company’s own Neuton brand.
The start of the five-year plan follows a year that Tay described as “very busy.” In 2010, YHI’s turnover rose 20.6 per cent to S$499.6 million (£246.9 million). “That in turn helped us achieve a record $35.6 million (£17.6 million) net profit after tax, an increase of 45.3 per cent from the year before,” he added. “Once again, I would like to point out that this clearly is a testament of my team’s hard work and it also signifies that we are on the right track for growth.” Net profit attributable to company equity holders was $33.0 million (£16.3 million). YHI’s distribution segment accounted for 70.9 per cent of total group turnover.
Tay stated he was “cautiously optimistic” about YHI’s performance for 2011 and expects the distribution business to continue being the group’s key contributor. “Moving forward, we have many tasks and challenges ahead of us, especially as we work towards implementing the group’s five-year expansion plan successfully,” he concluded. “With the continued hard work and commitment put in by the dedicated team at YHI, I am confident that we will continue to produce good results for 2011 and beyond.”