Japanese-owned companies, Kirutorisu Tech Sdn Bhd and ATOTIS Co., Ltd. to supply light emitting diode (LED) lighting to vending machines in Japan.
These contracts will enable MyLED Opto, Malaysia's LED and solid state lighting (SSL) manufacturer, to penetrate into the Japanese vending machine market.
According to the Japan Vending Machine Manufacturers Association (JVMA, May 2012), Japan has over five million vending machines in 2011, generating about USD67 billion in revenue. JVMA also said that the country has one of the world's highest vending machine densities with one machine per an estimated 23 people.
MyLED Opto's Chief Executive Officer, Mr Jetson Lai said, "We thank Kirutorisu Tech and ATOTIS for their confidence in the quality of our products.
"Our Japanese partners have estimated that based on their monthly orders of 300, 000 units of LED lights, the estimated accumulated order value will be in the range of RM800 million over the next five years (2013-2018), given the high number of vending machines and the strict LED lighting replacement policy in Japan.
"With these orders, the land of the rising sun has become our biggest overseas market. "
He also said, "With these contracts signed today, our monthly production is expected to increase significantly from 30, 000 units to 100, 000 units by the end of 2012 and gradually to 300, 000 units thereafter. "
In addition, MyLED Opto plans to diversify upstream and commence the production of LED components in the second quarter of 2013. It plans to produce 10 million pieces of LED components per month to cater to the rising demand for its SSL.
"With our continuous R&D efforts in design and manufacturing processes, we expect to bring prices down substantially and attract more buyers. This will also enable us to compete with the Chinese manufacturers in terms of pricing in China and worldwide.
"However, we remained focus on quality, and will continue to offer German quality LED lighting with up to five years warranty, " he added.
McKinsey's 2011 "Lighting the Way" second edition report indicates revenue of around EUR 100 billion for the global LED market by 2020. The total market is expected to grow annually by five per cent through to 2016, and by three per cent thereafter until 2020. Asia is leading the growth, with the region expected to account for approximately 45 per cent of the global general lighting market by 2020.
In conjunction with the signing ceremony with the Japanese partners, MyLED Opto also signed three new Memorandum of Understanding (MoUs) for the supply of its LED lights. The MoUs partners are Koperasi 1Malaysia Berhad, Awam Saujana Sdn Bhd, and a consortium comprising Poscti Sdn Bhd, Top IT Industries Sdn Bhd and Crestronics (M) Sdn Bhd respectively.
Earlier, on 18 July 2012, MyLED Opto had inked a similar tripartite MoU with Mofaz Direct SA Sdn Bhd and Amprex International Sdn Bhd respectively.
"We expect a strong revenue stream from these partnerships. Our LED lighting will be installed in various projects across Malaysia including the international universities located in Taman IImu, Terengganu, " Lai said
He also announced that on 20 September 2012, MyLED Opto has signed a joint venture agreement with Crestronics (M) Sdn Bhd, a subsidiary of BSL Corporation Bhd and Hightech Factory Automation (M) Sdn Bhd to establish a joint venture company known as Crestronics Greentech Sdn Bhd.
This joint venture company, of which MyLED Opto owns 33%, aims to capture more LED market share in Malaysia, and penetrate into the populous Indonesia and Sri Lanka.
Earlier, on 25 July 2012, MyLED Opto signed an agreement with two local Original Equipment Manufacturers (OEMs), HWG Consortium Sdn Bhd, a sister company within the Ho Wah Genting Group, and Wawasan Majujuta Sdn Bhd to manufacture LED lighting under the brand name of "E Bright" for domestic and international markets.
"With this collaboration, we target to secure some RM300 million in sales within the next three years should our projects materialise, " he said.
As part of MyLED Opto's domestic marketing strategy, it has entered into sales distributorships with eight companies, namely, MEP Group International Limited, Hightech Factory Automation (M) Sdn Bhd, MyLed Sabah Sdn Bhd, FKH Jaya Sdn Bhd, Innotech Synergy Sdn Bhd, WMW Concept Sdn Bhd, Nawa Hitech Resources Sdn Bhd and Chua Trading Company Sdn Bhd.
Deputy Finance Minister, Senator YB Dato' Ir Donald Lim Siang Chai and MyLED Opto Executive Chairman, Dato' Wan Shalihudin Wan Ibrahim witnessed the signing ceremony.
In his speech, Dato' Lim said, "MyLED Opto's focused approach on producing German quality, Malaysian made green brands sets the company on a strong foundation for growth. This enables them to leverage the global trend where countries, including Malaysia are transiting from traditional lighting technologies to LED, a more energy efficient and environmentally friendly light source.
"For example, the European Commission has recently pulled the plug on the last of the incandescent light bulbs while China has passed legislation to do the same. In Malaysia, the Ministry of Energy, Green Technology and Water have announced the phasing out of incandescent bulbs that will culminate in their ban in 2014. "
With plans to develop global brands, MyLED Opto's plant in Melaka which houses the R&D centre, will also be working towards manufacturing "plug and play" LEDs. This means that different LED lighting solutions can be plugged into a standard socket, giving corporate and retails consumers a wide variety of choices in changing the lighting at minimal cost.
