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Singapore Sunningdale Eyes Inkjet Cartridge Market Growth
SINGAPORE –Sunningdale
Tech Ltd., a Singapore plastic components supplier, Tuesday said it
plans to focus on niche products and is pinning its hopes on an inkjet
cartridge tie-up with Hewlett-Packard Co. for new growth.“We plan to focus on niche, high volume products that are less
susceptible to price erosion,” said company Chief Executive Koh Boon
Hwee.
The inkjet cartridge segment is a “sizable part of our business,” Koh
said, adding that revenue contribution would begin in the current
quarter.Also, Koh noted that the lifecycle of cartridge products is relatively long at four to five years.
The company was formed earlier this year through the merger of
component makers Tech Group Asia Ltd. and Sunningdale Precision
Industries Ltd.It makes printer casings and cartridges for customers like
Hewlett-Packard and Dell Inc. (DELL) as well as automotive parts,
including interior plastics for cars, and keypads and mobile phone
casings for Motorola Inc..In March, Sunningdale opened an inkjet cartridge assembly plant in
Singapore and set up another in Malaysia in July,both of which produce
solely for Hewlett-Packard.Currently, about 25% of its possible inkjet cartridge assembly lines
are in production and the company expects to ramp up to full capacity
by the middle of next year.Koh didn’t disclose the cost of the new facilities or the production volume.
However, he said that the capital expenditure of the new assembly lines
will be borne by Hewlett-Packard due to intellectual property rights
considerations.Adding to its portfolio, Sunningdale said Tuesday it recently won a
major customer in India for disposable razors, which it also
manufactures. It didn’t give further details.Monday, the company reported a 32% fall in fiscal fourth quarter net profit due to shrinking margins.
During the three months ended June 30, pro forma net profit was S$8.5
million compared with S$12.5 million a year ago. Revenue during the
three months rose 22% to S$103 million from S$84.7 million.The company said gross margins for the year ended June 30 fell to 27%
from 34% a year ago due to the high cost of resin, a key plastics
component, driven by rising oil prices, and start up costs of its
operations in Malaysia as well as the sampling and trial runs for 17
new automotive projects.The company operates 25 manufacturing sites in countries including Singapore, Malaysia, China, Indonesia and Mexico.
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