MeGroup starts producing components for Johnson Controls Hitachi

Malaysia ringgit notesMalaysia ringgit notes

MeGroup said on Monday it started to produce and supply noise, vibration and harshness (NVH) components in January for the heating, ventilation and air-conditioning (HVAC) industry as an approved supplier of Johnson Controls Hitachi.

As end-February, 64,710 units of NVH components have been supplied, Malaysia-based and Singapore-listed MeGroup said in a filing to SGX on Monday.

Wong Cheong Chee, executive chairman and CEO of MeGroup, said he was pleased the company had diversified the manufacturing business into the HVAC segment.

“HVAC NVH components are manufactured using similar processes and machinery as our current automotive NVH components, so their supply not only diversifies our income but also allows us to enhance the utilization of our production capacity,” Wong said.

The company said it expected “steady growth” in orders through the financial year ending 31 March 2020 for the NVH components used in Johnson Controls Hitachi’s retail and commercial air-conditioning units, based on preliminary indications from the customer and from the new models under development.

In addition, it said it would continue looking for opportunities to expand in the HVAC industry.

Get the Shenton Wire morning briefing in your inbox