Mestron Bags RM10 Million Order from Singapore-Based Tamaco Pole Manufacturing

Specialty pole maker has secured an order of SGD3.2 million (approximately RM10.3 million) from Tamaco Pole Manufacturing Pte Ltd.

This purchase order marks its biggest order this year from a single client. The order value of SGD3.2 million is equivalent to about 22% of the Group’s revenue in FY2021 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,” Mestron’s Managing Director, Mr Por Teong Eng said.

Indeed, based on the Group’s Annual Report for the financial year ended 31 December 2021
(FY2021), 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. According to the filing with Bursa, the delivery will be done upon the receipt of the delivery memo from time to time, subject to full delivery by the end of 2023.

“We are looking forward to fulfilling the orders from Tamaco Pole. The full delivery will be completed by the end of next year, which will help to support our revenue growth in the near term. With this purchase order, we will establish our network and presence in Singapore, allowing us to tap on the opportunities in Singapore,” Mr Por said, highlighting the potential of a long-term relationship with Tamaco Pole.

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