JOHOR BARU: Originally a plastic enclosure manufacturer for electronic devices, a Johor-based electronic manufacturing services (EMS) facility is now on the radar screen of several international electronic device companies.

This was the result of Toyoplas Group's decision to concentrate on being a contract manufacturer for electronic broadband devices for the international market.

Toyoplas EMS Manufacturing (M) Sdn Bhd in Kempas here has become a full-fledged contract manufacturer that brought in about US$100 million (RM312 million) in revenue for the Toyoplas Group last year.

Among the anchor companies that employ Toyoplas' services is the US-based Ruckus Wireless Inc, which contracts the company to produce several of their wireless broadband products.

"It was not an easy task to convince Ruckus Wireless to appoint us to be part of their contract manufacturing portfolio.

"This was back in 2008, which was a time when many multinational corporations focused on sourcing their manufacturing in China due to cheaper cost and labour," said Toyoplas Group chief executive officer Christina Tee when met by Business Times recently.

She said the Toyoplas Group's future lies in retaining customers for the long-term. To do that, it needs to be secured as a contract manufacturer for the industry.

The group managed to convince advanced wireless systems supplier Ruckus Wireless on its competitive pricing and quality. Tee said Ruckus Wireless was interested to try Toyoplas as they had a high regard for their earlier products such as the housings made by them.

Additionally, she said the Americans were also comfortable in dealing with the little-known Malaysian company as the staff had a good command of English, engineering capabilities and respect for intellectual property rights, with a willingness to commit for the long-term.

"To add on to the deal, Toyoplas convinced Ruckus Wireless that it will take on an immediate order of 2,000 units of their products without any upfront money as a goodwill," she said, adding that Toyoplas believed that such a move was important as it showed the Americans it was serious but still flexible in doing business.

Since the meeting with Ruckus Wireless in 2009, the firm has been gaining strength-to-strength and has also secured other contract manufacturing deals with similar technology firms such as RfNet, Imarda, RayNet, IWRX and Astrata.

Currently, the 4,645.15 sq m facility in Kempas produces some 1,500 finished products daily in two shifts.

Initially, the facility was owned by a different firm called Sek Sun Array and was bought over by Toyoplas last year for RM10 million.

"Sek Sun was incidentally one of our own suppliers. When they decided to sell, we took it as an oppor-tunity to grow our EMS business." 

Tee said the acquisition of the facility allows Toyoplas to have a backward integrated business model, which enables the group to closely monitor the quality, consistency and output of its products closely.

"Most of the products in the EMS business are similar as they are quite homogenous in nature. "We want to stand out in offering our services. We can be flexible, but at the same time we are also humble and cautious when going into business.

"As a Malaysian firm, I think we can go far and we have added advantages over China-based manufacturers as we have a high level of commitment to our clients." 

As part of the plans for next year, Tee is confident that the Toyoplas EMS Manufacturing facility can double its output to meet the growing demand for its finished products.

On another note, Tee revealed that the Toyoplas Group will be preparing for the listing on the Taiwan Stock Exchange in 2013. 

"The IPO will enable the Toyoplas group to raise the much needed expansion capital and also to become a publicly traded enterprise."