KUALA LUMPUR: Penchem Technologies Sdn Bhd’s growth outlook is expected to shine bright, in line with the rising global demand for light-emitting diodes (LEDs).
According to McKinsey’s 2011 lighting market report, the global LED market will grow to almost e65 billion (RM260.65 billion) by 2020, from e7 billion in 2010.
By 2020, LEDs are expected to account about 60 per cent of the total lighting market.
Penchem, which manufactures high-performance adhesives for clients producing various products, including LEDs, believes that LED lights will also enjoy good demand in Malaysia.
“The LED market penetration rate is very small, with about seven per cent, and this is why many players are eager to jump into the (LED) business,” Penchem Technologies managing director and chief executive officer Ng Chee Mang told Business Times.
Established in 1999, Penchem produces highly pure, precise and innovative chemical solutions designed for customers’ most demanding applications.
Among the adhesive products that it offers include surface-mount adhesives, IC chip-on-board adhesives, electrical and thermal conductive pastes, die-attach, potting adhesives, fast cure UV adhesives, LED epoxies and conformal coatings.
Ng said the firm has established itself as a leading player by applying its chemical expertise and solutions in key markets such as electronics, biotechnology, starch modification, polymers, catalysts pharmaceutical and agricultural chemicals.
The Penang-based company is a strong believer in research and development (R&D).
“Our focus will be more on R&D and we will continue to enhance the quality of our products by implementing continuous quality and process improvement activities,” Ng said.
He said the company allocated up to 35 per cent of its earnings each year for R&D.
Penchem’s efforts and investments in R&D over the years was recognised during the recent SME Innovation Award 2012.
At the award ceremony, Penchem walked away with the grand prize of RM1 million, a trophy and a certificate.
The company, which beat 32 other finalists, was also named winner of the “Best Innovation Award” in the manufacturing sector.
Ng said customer satisfaction is the company’s top priority.
“We’d like to establish long-term partnerships with our customers.
“Therefore, no order is ever too small for us.
“We have the confidence that our customers and their projects will continuously grow,” he said.
Penchem also has the capability to custom formulate special adhesives to customer requirements, at competitive prices. This, he said, can be done within a few weeks only.
For this year, Penchem expects turnover to hit RM10 million.