Goodway Anticipates a Profitable 2009

Following a net loss of Rm 12.8 million (£2.2 million) in 2008, Malaysia’s Goodway Integrated Industries anticipates returning into the black this year thanks to increasing demand and weaker raw material prices. Following the company’s annual general meeting on June 23, company CEO Tai Boon Wee told the Kuala Lumpur based Business Times that “yes, we will definitely see profit this year. Orders have been picking up since the second quarter of this year and our third quarter [performance] is showing better business and profit.”

In preparation for better times the retreader and compound supplier is placing an emphasis upon export market expansion – Brazil and Turkey are two locations named as upcoming recipients of extra attention. Demand for Goodway products in China is also increasing, and therefore the company intends to relocated its rubber compounding operation to a larger facility in Suzhou, Jiangsu Province. Monthly production at the new plant is expected to be between 3,000 and 5,000 tonnes.

“We foresee that the new plant will be able to accommodate up to 6,000 tyre retreaders in China,” said group managing director Yap Chee Wah, adding that currently the country is home to around 2,000 retreaders.

A third area of expansion is Australia, where the company plans to grow its OTR tyre retreading operation. The company has maintained a presence down under for a dozen years, mainly supplying retreads to mining sector customers.

The Goodway CEO said he expects the company’s overseas business to account for 80 per cent of profit in the coming five years; at present this figure stands at 70 per cent. “The overseas markets present better opportunities for growth for us. Our share in the local markets are growing but it has its limitations,” he commented.