MALACCA (Feb 20, 2011): Government-owned Composites Technology Research Malaysia Sdn Bhd (CTRM) has put off immediate plans to launch its initial public offering (IPO) as it seeks to triple the size of its revenue before selling shares to the public in five years.
"We want to strengthen and grow the company before going for listing on Bursa Malaysia," said chief executive officer Datuk Rusdi Mahmud.
"Our target is to hit RM1 billion in annual sales by 2015," he told SunBiz on Saturday.
To meet its longer-term objective, the company will spend between RM20 million and RM30 million a year on capital expenditure over the next five years.
"If we need more, we will go for commercial funding arrangements," Rusdi said when met at CTRMís plant in Batu Berendam, Malacca after the ceremony to roll out its first fan cowl package for the new Boeing 787.
The contract for the composite jet engine cover was awarded by Boeingís contractor Goodrich Aerostructures USA in September 2009. It was estimated to be worth RM3 billion with deliveries extending beyond the next decade.
"The work package is by far the biggest composite structure produced by CTRM," Rusdi said.
The Boeing 787 Dreamliner, the first composite-plastic airliner, is more than three years behind schedule, press reports said.
Boeing said recently that it was confident of delivering the new fuel-efficient commercial plane in the second half of this year.
Rusdi said CTRM will ship fan cowl packages for 22 Dreamliners this year.
CTRM is 98% owned by Minister of Finance Inc, with Petronas holding the remaining 2% stake.
The aerospace division is the groupís biggest contributor to revenue, with manufacturing track record for the top two global aircraft makers, Boeing and Airbus.
The company also makes radar domes and unmanned aerial vehicles, as well as supplying composite components for catamarans and monorails.
CTRM was identified by Prime Minister Datuk Seri Najib Razak as one of several government-owned commercial entities to be privatised as part of his economic reform agenda.
It was previously reported that CTRM was slated for listing this year.
Rosdi said that while the company was ready to go public, it was not in a hurry to do so.
"We are already a profitable and self-sustaining business, but we need to be stronger and bigger in order to maximise value," he said.
By Izwan idris