LNG Resources MD upbeat on prospects of the connector industry

by **hlk** Mon 27 Jun 2011, 18:41

MUAR: LNG Resources Bhd is upbeat on the prospects for the connector industry as many new innovative products required connectors in their settings and assemblies.

Managing director Low Chee Thean quoting a Bishop & Associates' research said 2010 was a comeback year for the connector industry following improvement in the global connector sales.

He said global connector sales last year was estimated at US$44.2bil, an increase of 28.4% after a sharp decline of 21.8% in 2009 oneconomic recessions in Europe and the United States.

“Connector is a main component in electronics and electrical products and is considered as the lifeline of the products,'' Low told StarBiz.

He said connectors were an important components of data-transmitting electronics and electrical products and automobiles.

Low said the demand for connectors would grow in tandem with growing interest in the smart phone.

He said other products that used connectors included audio-video products, healthcare-related equipment, computers, laptops and tablets.

“Demand for connectors will also push up sales for the semiconductor items as both industries are inter-related,'' added Low.

He said the Semiconductor Industry Association statistic showed sales reached a record of US$298.3bil last year from US$226.3bil in 2009.

Low said the Asia-Pacific region represented 54% of the total worldwide semiconductor market while the US semiconductor market accounted for 18% of the world market.

He said the earthquake and tsunami disasters which struck Japan on March 11, had minimal impact on LNG Resources as its products were supplied to multi-national corporations worldwide.

LNG Resources manufacturers high precision parts and components used in audio video products, home appliances, mobile phones, automobiles, industrial machines, external hard disk and computers.

For the financial year ended Dec 31, 2010, the company registered a net profit of RM5.3mil on RM36.64mil revenue against RM2.14mil and RM29.26mil respectively recorded in 2009.