KUALA LUMPUR: Specialty pole maker Mestron Holdings Bhd has secured an order of S$3.2 million (RM10.3 million) from Tamaco Pole Manufacturing Pte Ltd, marking its biggest order this year from a single client.
The purchase order (PO) of S$3.2 million is equivalent to about 22% of the group’s revenue in FY21 and raises MHB’s total order book size to RM63 million.
With over 40 years of experience in the industry, Tamaco Pole is involved in the supply of lighting steel pole-related business and consultancy advisory services.
“This PO has provided us with opportunities to diversify our earnings base and reduce the reliance on our home market, Malaysia. We believe this is a great opportunity to expand our client base and tap on the rising demand for our products beyond Malaysia,” said Mestron managing director Por Teong Eng
He said that based on the group’s annual report for the financial year ended Dec 31, 2021, approximately 93% of its revenue was generated from Malaysia, while less than 2% came from Singapore.
Given Tamaco’s strong track record, Por is confident that an established relationship with the Singapore-based company will create a long-term relationship that will add value to Mestron.
According to Por, the latest PO may potentially lead to bigger orders from Tamaco, or new contracts from other industry players in Singapore.
In terms of the delivery of the products, Mestron will progressively deliver and ship the products to a location that both Mestron and Tamaco Pole mutually agreed.
With this purchase order, we will establish our network and presence in Singapore, allowing us to tap on the opportunities in Singapore,” said Por.
