Forging Ahead in Malaysia's Aluminium Industry – Econframe Berhad

In a move that marks a significant leap forward for Malaysia's aluminium sector, Econframe Berhad, a titan in the production of aluminium door frames for the residential market, has expanded its market dominance through a strategic acquisition.

January 2023 saw EFRAME acquiring a commanding 65.0% stake in Lee & Yong Aluminium Sdn. Bhd. (Lee & Yong), a distinguished manufacturer of aluminium window frames and provider of building façade solutions, for RM18.2 million, a package that included valuable land assets.

Econframe’s tactical expansion into Lee & Yong’s territory is not just a mere extension of its product line but a well-thought-out move to tap into the lucrative commercial and government sectors.

With Lee & Yong illustrious 30-year history of contributing to significant projects in Kelantan and Terengganu, including the construction of landmark buildings and government infrastructures, this acquisition is poised to enhance Econframe’s footprint in these sectors significantly.

At the heart of Lee & Yong’s success is Mr. Yong, the company's founder and passionate industry stalwart, who retains a 35.0% shareholding. Under his stewardship, LYASB has adopted a policy of engaging in projects that guarantee a net margin of a minimum of 15.0%, ensuring profitability and efficient capacity utilisation.

This approach has culminated in an impressive orderbook exceeding RM100.0 million as of February 2024, with projects slated for completion over the next two fiscal years.

Lee & Yong is on the brink of a significant capacity expansion, with plans to extend its factory onto a 2.13-acre parcel of land adjacent to its existing premises. This bold move, requiring a capital investment of RM20.0 million, is set to double Lee & Yong’s production capacity, underpinning its aggressive strategy to secure and fulfil a larger volume of orders.

While the partnership between Econframe and Lee & Yong heralds a new era of growth and innovation, it is not without its challenges. The companies must navigate potential risks such as market fluctuations, rising aluminium prices, and the imperative of optimising the expanded production capacity.

However, with strategic foresight and a commitment to excellence, Both companies  are well-positioned to overcome these hurdles and continue their trajectory of growth in Malaysia's dynamic aluminium industry.