EG Industries BHD Secures Major Deal with US Tech Firm

In a significant development for the Malaysian manufacturing sector, EG Industries Bhd, a well-established company known for its high-quality electrical appliances, machinery, and components, has clinched a major deal with a US-based tech firm. This agreement marks a pivotal step in EG Industries’ expansion into the global artificial intelligence (AI) market.

Strategic Partnership and Expansion

The deal involves EG Industries supplying consumable network and AI-related products for the global market. The US firm, referred to as Company G due to a non-disclosure agreement, is a renowned provider of fibre-optic internet services and AI robotics. Known for delivering ultra-fast and reliable broadband to both residential and commercial users across the United States, Company G’s partnership with EG Industries underscores the latter’s growing reputation in the tech manufacturing space.

Investment in Smart Manufacturing

To accommodate this new venture, EG Industries plans to repurpose the third floor of its Smart Factory 4.0 facility located in Batu Kawan, Penang. Originally designated for office and other uses, this 24,400 square foot space will now be dedicated to producing Company G’s products. The company anticipates beginning production in the latter half of 2025, with plans to achieve full-scale production by the following year.

Positive Market Reaction

The announcement has been well-received by investors, with EG Industries’ stock price rising by 3 sen, or 2.6%, to close at 1.19 Malaysian Ringgit. Despite a significant drop of over 51% since the beginning of the year, this deal is expected to contribute positively to the company’s profitability in the coming financial year.

Leadership’s Vision

EG Industries’ Group Chief Executive, Datuk Jiang Bang Keng, expressed pride in partnering with a leading US firm, emphasizing the deal as a testament to the company’s capabilities and manufacturing excellence. He highlighted that this agreement, following a previous 5G photonics-related order, reinforces the confidence of top-tier clients in EG Industries’ expertise.

Looking Ahead

As the demand for high-speed, secure digital connectivity continues to grow globally, EG Industries is well-positioned to become a key player in this evolving market. This strategic move not only diversifies the company’s product offerings but also strengthens its foothold in the competitive tech manufacturing industry.

With a market capitalization of 1.08 billion MYR and a price-to-earnings ratio of 13.92, EG Industries is poised for growth, leveraging its decades of experience and reputation for reliability to meet the challenges and opportunities of the future.