Ho Wah Genting Bhd's (HWGB) subsidiary MyLED Opto Technology Sdn Bhd has secured two contracts valued at RM800mil to supply light emitting diodes (LED) to two Japanese companies.
MyLED Opto Technology had on Tuesday signed five-year contracts with Kirutorisu Tech Sdn Bhd and ATOTIS Co., Ltd to supply LED lighting to vending machines in Japan.
MyLED Opto chief executive officer Jetson Lai said with these contracts, its monthly production is expected to increase from 30,000 to 100,000 units by year end and gradually to 300,000 units thereafter.
"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 RM800mil over the next five years (2013-2018), given the high number of vending machines and the strict LED lighting replacement policy in Japan," he said.
Lau said with these orders, Japan had become its largest overseas market.
He added MyLED Opto plans to diversify upstream and produce 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," he said.
Kirutorisu Tech managing director said it chose MyLED Opto due to the quality and price of the products supplied.
