South Korean electronics giant to build factory in Port Klang

March 11, 2018 | By | Reply More

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SEOUL: South Korea’s home appliance maker, Cuckoo Electronics Co Ltd, plans to build a RM100 million factory in Malaysia to produce water purifier products.

The factory in Port Klang will meet the huge demand resulting from the rapid growth in Southeast Asia and help trim transportation costs.

Speaking to reporters at Cuckoo 40th anniversary celebrations, from March 4-10 here, Cuckoo’s chief executive officer Brian Koo Bon Hak, said: “We’re checking out properties and carrying out a feasibility study.”

Moving forward, he said, the company, which ranks No 1 for rice cookers in South Korea, might also build two other factories in Indonesia and India to meet increasing demand.

Currently, it has two plants in Yangsan and Siheung, South Korea, with a total production capacity of more than 4.5 million sets annually.

Cuckoo Electronics’ main products include multi-functional electric pressure cookers, electric rice cookers, water purifiers, air treatment units, as well as induction and other types of cookware.

Koo said the company aimed to rake in US$1.5 billion (RM5.8 billion) in sales this year, from US$760 million last year, by offering more products and actively entering Vietnam, India and Indonesia in pursuit of new customers.

“We’re adding a lot of products in the line-up, like blenders, healthcare products and pet care gadgets.

“We’ve taken steps to expand to new markets. We entered into Malaysia two to three years ago. Last year, we entered Brunei and Singapore.

“We are next targeting Indonesia, Vietnam and India. We’re also thinking of exploring the US and Chinese markets,” he said.

To promote the brand, Cuckoo Electronics has chosen South Korean actor, singer and host Lee Seung-gi as its new global ambassador for all its products.

This includes its mild-alkaline water purifiers, multi-cookers and air purifiers.

Lee, most notable for his leading role in the hit Korean TV series “A Korean”, will appear in the company’s advertising campaigns in South Korea, Malaysia, Brunei, Singapore and Indonesia.

For its Southeast Asian business, Cuckoo International (Malaysia) Sdn Bhd chief executive officer Hoe Kian Choon said he was confident of achieving the sales target of RM500 million for 2018, from RM208 million last year.

The company will double its brand stores and kiosks from 330 last year to 600 this year and offer the best quality service to customers.

Several new water and air purifiers, as well as induction cookers, will also be introduced in the next few months, he said.

A mobile app for customers to make appointments for their products’ regular maintenance service will be launched soon.

On its new factory in Malaysia, Hoe said, the construction of the factory, at a minimum cost of RM100 million, would provide jobs to Malaysians and strengthen its business operations.

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