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 user 2005-09-03 at 10:56:00 am Views: 68
  • #12653

    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
    The inkjet cartridge segment is a “sizable part of our business,” Koh
    said, adding that revenue contribution would begin in the current

    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

    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.