"30% of the Group's revenue now derives from TR's own Asian manufacturing base"

Jim Barker
Chief Executive

Revenue

Arrow up25%

Operating Profit

Arrow up17%

Number of employees508
Site locations7

Pictured: New state-of-the-art inspection equipment, designed to support 'zero defect philosophy'.

The year has seen the Asian business develop well. PowerSteel, in particular, has been successfully integrated into the Group and is now benefiting from new opportunities outside its traditional market. Its customer base has increased and dependency on one major customer has reduced.

It has also been a challenging year due to the global slowdown in the electronics and telecommunications sector, but at TR we have managed to overcome this with new business wins in other sectors, mainly due to the flexibility we can offer the market with our six Asian factories – which have the combined ability to manufacture a wide range of sizes and specifications from micro screws for disc drives to long engine bolts for automotive.

Investment

New investment in production and state-of-the-art inspection equipment for the Singapore and Malaysia manufacturing plants has meant that these plants have adopted 'zero defect philosophy', giving them a significant advantage over competitors. The Taiwan sites will also be moving in the same direction during 2014.

The Taiwan facility has reached maximum output, which means that we require further investment in plant and machinery to satisfy customer demand. As a result, we are reviewing the possibility of a new facility to bring under one roof all the plants that are currently multi-sited.

Due to our increased focus on the automotive industry, it has become necessary to obtain licences to manufacture patented parts and parts with trademarks.

We have recently added Philip's complete range of drive systems which include the newly patented Mortorq Super, and Acument's Strux clinch system to our range of proprietary products. We already have licences for Torx, Torx-Plus, MA Thread, Totsu-Pra and Quadrex, and we own the Pozidriv trademark. More licensing agreements are being negotiated in our strategic objective to be able to manufacture the most common globally available fastener designs that offer technical advantages to our customers.

Overview asia map medium

People

Investment in people is still one of the main focuses of the business. The sites are selectively recruiting experienced experts from our industry as well as nurturing employees with potential to take over key positions. One such newcomer is Theodore Wong, an automotive specialist, who is now managing the sales team in PowerSteel. The focus on people has resulted in a high retention rate of employees and highly dedicated experienced teams across the region.

Manufacturing based employees

Female

23%

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Male

77%

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Office based employees

Female

47%

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Male

53%

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Outlook and strategy

Over the past few years we have seen a number of transfer projects into our Chinese business which are now coming to an end.

In its place we are seeing massive opportunities within the automotive market and this should create solid ongoing growth for this business.

The gearing up for 4G infrastructure network worldwide will see the revival of the telecommunications sector within which we are well connected due to our well proven experience and knowledge.

Going forward we will continue to grow our business through acquiring new major accounts, growing existing accounts, and further expanding our market boundaries – especially into regional ASEAN countries. Working with the global team on global accounts ensures that we keep the business within the Group wherever the customers relocate, while also enhancing our standing as a global supplier. This has proved to be a winning formula.

The new fiscal year comes with great opportunities and we aim to deliver yet another year of good results. As a team, we remain very optimistic about the future.

I wish to take this opportunity to thank my staff in Asia for putting in tremendous efforts to achieve good results.

Thomas Tan
Managing Director TR Asia

"TR Asia has improved overall profitability through a combination of new business wins, integration of PSEP and healthier demand from existing customers"

Thomas Tan
Managing Director TR Asia

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