Metal stamping manufacturer in Johor, Malaysia completes the acquisition of factory

What started out as opportunistic move over a year ago has turned strategic now, as Demand Options, Ge-Shen Corporation Berhad’s metal stamping unit is able to fully utilize the space in the new factory. With increased capacity, it is able to serve more customers in the supply of precision metal stamping parts around Johor, Malaysia and rest of the world.

First announced 2 May 2018, Demand Options rented the property with an option to purchase. This gave flexibility to the management to organize its finances and operations to do its production planning. However, as business ramps up, the Management took a view that exercising the option to purchase early was more beneficial – financially and strategically as major improvements were to be made to improve the property.

Today, the transaction has completed.

Expanded metal stamping facility
The new facility is directly neighboring Demand Options’ current facility

Extending Metal Stamping Capabilities

Demand Options has been in the metal stamping and sheet metal fabrication since 1997 in Johor, Malaysia. Previously growth has been hampered by the lack of space as it was challenging to make incremental capacity increases in another site. Following this acquisition, Demand Options has ordered a further 13 units of metal stamping machines of various size. This increases its metal stamping machines from 20 to 33 units (+65%). Some 7 units has arrived and the rest is expected to arrive in the coming months.

New metal stamping has arrived the Johor facility
The machines are arranged in such a way that robotic arm transferring is possible: reducing takt time, cycle time and overall costs.

Renovation on the new site has started earlier in the year, just as enquiries for metal stamping parts has picked up. With ample space now, the Management is confident that it will be able to make specific and concentrated investments into further capacities where required.

Demand Options can perform various different processes, for example, both progressive and single functions, spinning, riveting, tapping, CMT welding etc.

Growing together

Ge-Shen has been in expansion mode over the past years and is continually looking at various options to continue growing.

Overall, Ge-Shen now occupies more than 550,000 square feet of factory space in 4 different sites in Johor, Penang and Hanoi. Ge-Shen aims to continue developing capabilities in order to serve customers better.

Ge-Shen is looking for various business development opportunities and welcomes and any enquiries.

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