PUTRAJAYA: CTRM Aero Composites Sdn Bhd will have a new RM100 million plant operational by the second quarter of 2017 in Malacca to ramp up its production capacity to meet the demand for aircraft composite components.
CTRM, a unit of DRB-HICOM Bhd, specialises in manufacturing composite components for commercial and military aircraft.
CTRM group chief operating officer and chief executive officer Che Akhma Ismail said the company hopes to bolster its manufacturing capacity to meet the expected rise in demand from customers such as aircraft maker Airbus.
“Airbus will increase its demand to 50 shipsets per month by mid-2017, and 60 shipsets per month by 2019. That is why we need the new facilities. Airbus is calling it an unprecedented growth and is making sure that all its suppliers are ready with the capacity and capabilities (to meet the demand),” he said.
CTRM has a manufacturing facility in Malacca which can produce up to 52 shipsets currently.
Che Akhma was speaking after the signing of a 10-year contract extension with United States-based Spirit AeroSystems Inc for the supply of aircraft composite components.
The new deal is expected to contribute a revenue of RM320 million annually to CTRM for the next decade.
Spirit AeroSystems Inc was represented by Spirit AeroSystems Malaysia Sdn Bhd managing director Francis Hiew.
The new agreement includes a revision of the commercial value of the current work packages and the 10-year extension which covers production and supply of Airbus single aisle programme, Airbus A350 J-Nose and Root End Fixed Fairing.
Also present were Deputy International Trade and Industry Minister Datuk Lee Chee Leong, DRB-HICOM Group managing director Tan Sri Mohd Khamil Jamil and its chief operating officer (automotive distribution and manufacturing) Datuk Radzaif Mohamed.