KUALA LUMPUR: Mestron Holdings Bhd (MHB) has signed a supply agreement with Singapore-based Tamaco Pole Manufacturing Pte Ltd to supply various products worth SG$1.5 million (approximately RM5.3 million).
Under the terms of the agreement, MHB will supply various products to Tamaco Pole.
This strategic alliance signifies MHB's growing international footprint and enables the company to leverage Tamaco Pole's over forty years of expertise and leadership in the supply of lighting steel pole-related business and consulting advisory services.
MHB managing director Por Teong Eng said partnering with an established leader like Tamaco Pole marks a significant milestone for the company in terms of its regional expansion goals.
"This collaboration is a strategic move to diversify our market reach beyond Malaysia and make inroads into the thriving Singaporean market, capitalising on the rising demand for high-quality, innovative steel pole solutions," Por said in a statement.
Tamaco Pole is Singapore's leading steel pole and column manufacturer with over forty years of track record.
The company supplies lighting steel pole-related business and consulting advisory services.
The deal also underscores MHB's commitment to regional growth, diversifying its reliance on the Malaysian market and responding to the increasing demand for its innovative product range.
Further, the supply agreement also represents a renewed partnership with Tamaco Pole after the successful supply agreement was signed in December 2022.
"Our initial collaboration with Tamaco Pole last year laid the foundation for a partnership based on mutual growth, innovation, and commitment to quality.
"The reaffirmation of our alliance speaks volumes about our product quality, client satisfaction, and increasing influence in regional markets.
"It is a promising indicator of potential repeat business that is beneficial not just for us but for our valued customers," Por added.
The agreement entails a progressive delivery schedule, with products being shipped to locations determined upon mutual agreement after receiving successive delivery memos.
MHB is committed to fulfilling the entire delivery by December 31, 2024, showcasing its capability to execute large-scale supply operations within stipulated timelines.
The collaboration with Tamaco Pole is seen as a strategic enhancement of MHB's business portfolio as it allows the company to expand its presence in Singapore and reinforces its position as a key player in the region's industry.
"We believe this supply agreement with Tamaco Pole will help to support our revenue growth in the near term and put us in a strategic position to expand our network and presence in Singapore.
"We are excited about the synergy this collaboration creates and the opportunities it presents for both Mestron and Tamaco Pole," Por said, highlighting the potential long-term relationship with Tamaco Pole and the expansion into the Singapore market.