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 expansion of its manufacturing to Port Klang, Selangor, will bridge the demand gap due to the rapid growth in Southeast Asia’s rapid growth with its huge potential market, apart from trimming its transportation cost.
Speaking to reporters at Cuckoo’s 40th Anniversary celebration held from March 4 to Saturday here, its 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 ranked No. 1 for rice cooker in South Korea, might build two other factories in Indonesia and India to meet the increasing rising demand.
Currently, it has two plants located in Yangsan and Siheung , South Korea with total production capacity of more than 4.5 million sets annually.
Cuckoo Electronics’ main products include multi-functional electric pressure cooker, electric rice cooker, water purifier, air treatment, induction range and cook ware.
Meanwhile, Koo said the company aimed to rake in was targeting US$1.5 billion (US$1 = RM3.91) (RM5.87 billion) in sales this year, from US$760 million last year, by offering more product portfolios and actively entering venturing into Vietnam, India and Indonesia , in pursuit of in search for new customers.
“We’re adding a lot of products line-up like not only rice cooker and water purifier but also some blender, highly induction range, healthcare and pet care.
“We’ve taken steps in expanding to expand from one geographic market to another. We have started Malaysian business since two to three years ago and have startedwhile in Brunei and Singapore last year.
“We are also targeting Indonesia, hopefully Vietnam and India. And, we’re also thinking of exploring the United States and China markets, too,” he said.
Cuckoo Electronics, to promote its brand, has announced that South Korean actor, singer and host, Lee Seung-gi, has signed on to become its new global ambassador for all its products.
These include 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 a sales target of RM500 million for this year from RM208 million last year.
The company will add its Brandstore and Brandkiosk to 600, from only 330 last year, and continuously offer the best quality service to customers.
Several new water and air purifiers as well as induction cooker will also be introduced in the next few months, he said, adding that, a mobile application for customers to make appointment for their products’ regular maintenance service would be launched soon.
On its new factory in Malaysia, Hoe said the construction of its new factory in Malaysia at a minimum cost of RM100 million would provide jobs to Malaysians and strengthenboost its business operation.