VSI Lands $82M Contract from Existing Customer

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Barely three weeks after its recent proposed acquisition of NEP Holdings (Malaysia) Berhad that comes with committed orders of RM100 million a year, Malaysia-based EMS firm V.S. Industry Berhad (VSI) secures another major win after it was awarded the contract manufacturing job amounting to $82 million from one of its existing key customers to supply a new model of coffee brewer.

Under the contract, VSI shall design and manufacture the new model of coffee brewer while the customer undertakes to purchase a certain minimum quantity over that next three years that amounts to $82 million. VSI expects to begin mass production of the new coffee brewer in January 2017 and this should contribute positively to its earnings for the financial year ending 31 July 2017.

It is noteworthy to mention that this is the first full ODM model of coffee brewer by VSI for the customer, and in view of that, the customer has granted exclusive manufacturing rights to VSI for the first 18 months.

"This is a significant milestone for us. Our client is a well-known brand of personal beverage system company in the North America with annual turnover of few billion US Dollars. To have us fully design a coffee brewer for them demonstrates the level of confidence and trust they have in our capability and quality," Datuk S.Y. Gan, managing director of VSI, said. "At VSI, we are increasingly moving up the value chain to be the ODM producer instead of just being an OEM producer. This helps to forge a stronger bond with our customers. In fact, our highly capable R&D team now undertakes designing, prototyping and testing work for a number of our customers. In return, we are awarded the manufacturing orders, and some on exclusive basis. So it’s a win-win partnership for both parties."

Based on the latest ranking by the Manufacturing Market Insider, a leading publication on Electronics Manufacturing Services (EMS), VSI ranks 4th in the ASEAN region by revenue, and is the largest EMS provider in Malaysia.

About VSI

VSI is one of the world’s top 50 Electronics Manufacturing Services (EMS) corporations, providing integrated manufacturing solutions to multinational corporations mainly from the Europe, USA and Japan. It has advanced 3 manufacturing facilities in Malaysia, Indonesia, China and Vietnam. Backed by a team of highly skilled and innovative R&D personnel, VSI also serves as an Original Design Manufacturer (ODM) in addition to being Original Equipment Manufacturer (OEM). Its comprehensive services include high-precision printed circuit board assembly, plastic injection moulding, sub- and full assembly as well as tool design and fabrication.