V.S. Industry Bhd has announced a major expansion into the Philippines with new orders valued at RM1.5 billion over the next two financial years.

This is through its subsidiary, VS Industry Philippines, Inc (VSIP), which will handle the manufacturing of consumer electronics on a box-build assembly basis, including production, assembly, testing, packaging, and logistics for a key customer.

The new orders are anticipated to contribute RM300 million in revenue for the financial year ending July 31, 2025 (FY25) and RM1.2 billion for FY26.

Mass production is scheduled to start in the first quarter of 2025.

To facilitate this expansion, VSIP has signed a lease agreement with ALogis Artico, Inc. for a 52,782 square meter facility in Sto. Tomas, Batangas.

ALogis Artico, Inc., a subsidiary of AyalaLand Logistics Holdings Corp., is a major player in industrial real estate in the Philippines

This asset-light approach minimises financial risk, with the lease effective from September 2, 2024, for five years, and includes a six-month rent-free period and an option to renew for another five years.

VS MD, Datuk SY Gan, mentioned that the group has allocated approximately RM100 million for capital expenditure, funded through internally generated funds. I

Installation of machinery and trial runs are set to begin soon.

The identity of the key customer remains confidential due to a non-disclosure agreement. — TMR