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Fibrelite continues to expand global manufacturing

14 Mar '12

4 min read

Fibrelite recently opened a new Malaysian production and service facility in order to meet accelerating demand. In addition to this new manufacturing facility, Fibrelite also has a 30,000sq ft. factory in the UK and a 35,000sq ft. plant in the US.

South East Asia is a rapidly growing region of the world economy with increasing car ownership meaning service station construction is buoyant in these emerging markets. Fibrelite chose Malaysia as its SE Asia manufacturing hub because of its investor friendly approach to business and inward investment.

"We want to thank all our employees, our existing customers and the Malaysia Investment Development Authority (MIDA) for their support," said Ian Thompson, Fibrelite's Managing Director. "This latest investment in our manufacturing capabilities has put Fibrelite in an even stronger position to shape the future of the industry, worldwide. We're making significant investments in technology, product innovation, and state-of-the art manufacturing operations to serve our customers around the world."

"As market leader, we have a responsibility to deliver fast service and top-quality products at highly competitive prices direct to this region. With our own, dedicated manufacturing and service facility now open in Kuala Lumpur, we will be able to better serve our customers in South East Asia and accelerate our growth. This move underscores Fibrelite's ongoing strategy to support local infrastructure. With our brand new modern facility we can now manufacture high quality parts in volume with a skilled, trained workforce which is predominantly local labour."

The new production facility is now fully operational meaning Fibrelite can supply locally its full range of tank covers, tank chambers, dispenser sumps, fill sumps and penetration fittings. "As we have reached full production capacity earlier than expected we can now supply all our customers in South East Asia directly from Malaysia which include Singapore, Hong Kong, China, Philippines, Indonesia, Australia and New Zealand."

A formal ribbon-cutting opening ceremony is scheduled for several weeks' time. Key customers, suppliers and members of the Malaysia Investment Development Authority are expected to attend.

Fibrelite manufactures all its equipment using Resin Transfer Moulding (RTM) techniques, which produce high quality parts consistently which are increasingly in demand from the oil companies as they strive to eliminate all risks of fuel contamination at service stations. With the introduction of ethanol-blended fuels across the region, watertight containment is the highest priority for oil companies. Fibrelite's vacuum tested FRP products provide the perfect solution.

RTM processes are not well established in SE Asia and Fibrelite has spent 12 months negotiating with local suppliers to ensure local availability of the specialised raw materials and resins needed to supply its KL factory.

"The advantages of making our customers' requirements in Malaysia include elimination of customs duties (typically 30%) and expensive sea freight (15%) which are both associated with imported products. Fibrelite will pass on these savings to our established customers and intend to use this competitive advantage to win valuable new business with the local oil companies in the region."

For the past 12 months, Fibrelite have worked closely with the Malaysia Investment Development Authority (MIDA) who gave advice and provided local expertise to facilitate a substantial investment in the manufacturing sector. MIDA offer an excellent free expertise and advice on manufacturing licenses, duty exemptions on plant and machinery and tax incentives. In addition to its established business of supplying service station equipment, Fibrelite are now supplying composite fibreglass covers to utility and telecoms markets. Due to the recent increase in metal theft (including manhole covers) which has reached epidemic proportions in some countries, there is a significant demand for a fibreglass solution to the problem.

Historically fibreglass manhole covers have been more expensive than their metal equivalent and coupled with high import duties and other costs this solution has been uncompetitive. Fibrelite intend to exploit its quality, high volume, low manufacturing cost facility in Malaysia to offer a very cost competitive alternarnative which will save the affected industries significant cost reductions on replacing stolen manhole covers.

Additionally this should lead to an improvement to general health and safety as more and more injuries are occurring to the public as a result of falling down open manholes due to theft of the covers.

Fibrelite

Construction Textiles

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Fibrelite continues to expand global manufacturing

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