KUALA LUMPUR: Integrated engineering solutions provider Kelington Group Bhd (KGB) has taken a strategic step forward in its global growth strategy by expanding into Germany and Hong Kong.
This move positions the company to capitalise on the flourishing global semiconductor industry and broaden its geographical reach.
Chief executive officer Ir Raymond Gan said the semiconductor industry outlook is bright, and chipmakers are aggressively expanding production capacity to meet surging demand for chips, driven by factors like geopolitical diversification and the need for advanced technologies like artificial intelligence (AI), the Internet of Things (IoT), electric vehicles, and Industry 4.0.
“As these technologies advance, the demand for semiconductor manufacturing facilities remains strong.
“After a contraction in 2023 due to the industry’s cyclical nature, semiconductor manufacturing equipment growth is expected to resume in 2024, with sales expected to strongly rebound in 2025,” he said in a statement.
Gan said this is driven by capacity expansion, new fab projects, and high demand for advanced technologies and solutions across the front-end and back-end segments.
“Germany and Hong Kong are key hubs for innovation in these sectors, and we are optimistic of capturing a larger market share of the global semiconductor capex in these two markets,” said Gan.
He said that leveraging the company’s track record of completing successful projects for leading multinational clients (MNCs) in Malaysia, Singapore, China, and Taiwan, KGB is well-positioned to attract new clients in Germany and Hong Kong and serve existing clients who are expanding their manufacturing footprint in these regions.
To expand in both markets, KGB has incorporated Kelington Engineering (Germany) GmbH and Kelington Engineering (HK) Ltd as indirect wholly-owned subsidiaries.
KGB provides integrated engineering solutions, including ultra-high purity (UHP) systems, process engineering and general contracting services, which are critical elements required for building new semiconductor manufacturing plants.
Benefitting from the capacity ramp-up among semiconductor players, KGB reported revenue and net profit of RM1.6 billion and RM102.7 million, respectively, for the financial year ended December 31, 2023.
