Founded in 1978, homegrown Fu Yu Corporation is one of Singapore’s oldest and largest manufacturer of precision plastic and metal components and products.
Singapore acts as its Smart Factory – setting the stage for growth, innovation and continued leadership in the precision manufacturing sector. The Smart Factory coordinates round-the-clock and real-time production activities its across six manufacturing locations – with another two sites in Malaysia and three in China.
This also equips Fu Yu with the flexibility and ability to manage its supply chains, manage production across regions and tap into the skills and capacity of engineers based in various facilities.
Complementing its traditional mould-making techniques, Fu Yu has integrated new precision engineering technologies such as metal 3D printing. This allows the firm to create highly complex and precisely engineered moulds previously impossible with conventional techniques.
Today, Fu Yu is an Industry 4.0 company, leveraging smart software to connect its manufacturing plants to one another – enabling data sharing and interoperability solutions. Having invested in advanced automation technologies, Fu Yu can operate its production lines 24/7 with minimal human intervention.
Here are 5 things to know about SGX-listed Fu Yu Corporation if you’re interested in the high-end precision engineering sector.
#1 What Are Fu Yu Corp’s Focused Markets And Are There Plans To Expand Beyond These Markets?
We will prioritise a return-to-basics by improving our core strengths in the design and manufacturing of moulds, with our Smart Factory being the key pillar.
Our strategy to expand our customer base includes target the biomedical and life sciences sectors, which offer high growth potential. We have added new biomedical cleanrooms in our facilities in Malaysia and China to support growth in these sectors and will progressively add more cleanroom capacity.
We will also promote sustainability and reduce emissions by installing solar panels in our facilities and replacing our hydraulic machinery with electrically powered ones which consume less oil. We also help our customers improve their sustainability efforts by helping them transition to lower-emission bio-rated resins.
In our manufacturing segment, our product lines are categorised into Consumer, Medical, Automotive & Power Tools, Network & Communications, Print & Imaging, and Others.
We are also expanding into the high-growth biomedical and life sciences sectors, as our expertise in producing high-precision products and quality control practices are directly transferable for developing advanced medical devices and diagnostic equipment.
#2 Can You Provide An Outlook On The Competitive Landscape In Your Industry And How Fu Yu Corp Plans To Stay Ahead Of Its Peers?
The manufacturing sector in Asia is experiencing a positive upswing, driven by increased demand in areas such as consumer electronics and healthcare, as customers begin to restock their inventory amid the broader global economic recovery.
We anticipate steady growth in the sector over the coming years, though it will continue to evolve with trends such as sustainability, technological advancements, customisation, and geopolitical factors.
Our recent strategic transformation is well-positioned to capitalise on this macroeconomic recovery, and ongoing supply chain reconfigurations are advantageous for the regions where we operate in.
Our extensive network and robust supply chain management capabilities will help customers future-proof their supply chains whilst helping us stay ahead of our peers.
#3 What Are Some Notable Developments That Shareholders Can Look Out For Or Expect In The Near To Medium Term?
We are preparing to officially launch our Smart Factory in Singapore, which will showcase a range of cutting-edge technologies we have integrated.
We have also been expanding our cleanroom capabilities across Singapore, Malaysia, and China in response to the growing demand for medical devices.
We are also enhancing our manufacturing capabilities by upgrading to newer, more efficient, and environmentally friendly machinery, as well as introducing new secondary processing capabilities,
Fu Yu is also collaborating closely with our suppliers to develop, test, and implement resins that are more carbon-friendly and have a lower environmental footprint.
We are actively engaging with our customers, who play a critical role in influencing our collective carbon footprint, to promote the use of greener and recycled resins. Our efforts include assisting customers in testing and adopting new, carbon-friendly materials, ensuring that these alternatives help reduce our joint carbon emissions without compromising on quality.
We have also taken significant steps to reduce our carbon footprint through investments in renewable energy. We have recently installed solar panels at our manufacturing facilities in Singapore, which will reduce our Scope 2 carbon emissions, and plan to do the same at our sites in Malaysia by the end of the year.
We aim to leverage our advanced manufacturing capabilities to attract and serve new clients in the growing biomedical field, even as we enrich our relationships with existing customers.
In April 2024, we were appointed by kid-tech startup myFirst Tech to be their exclusive contract manufacturer, marking our first venture into box-building manufacturing of Internet of Things (IoT) enabled smart devices.
Additionally, our advanced precision tooling capabilities have attracted interest from export tooling customers, and we are excited to build on this growing segment. We have seen good progress on this front, as we have already begun manufacturing tools for a global medical manufacturing player.
#4 What Is The Group’s Biggest Risk Or Challenge In The Next 1-3 Years That Shareholders Should Be Most Concerned About? And How Is The Group Preparing Itself For It?
The biggest risks we foresee are increasing geopolitical challenges, and keeping pace with rapid technological advancements in the industry.
The evolving geopolitical landscape introduces uncertainties that could disrupt our supply chain, affecting everything from raw material availability to transportation logistics. At the same time, the rapid evolution of technology necessitates that we stay ahead of industry trends to maintain our competitive edge.
Having identified these challenges, Fu Yu’s transformation has built a more resilient and adaptable infrastructure for our customers, ensuring seamless operations and enhanced flexibility. Our diversified network of suppliers and partners also plays a crucial role in mitigating risks and maintaining continuity even in volatile conditions.
Meanwhile, we are investing in new machines and advanced technologies to stay ahead of industry trends and meet the evolving needs of our customers. However, technology alone is not enough – Fu Yu needs skilled and knowledgeable personnel. By investing in our people, we ensure that we harness the full potential of our technological advancements, delivering exceptional value and maintaining our leadership position in the industry.
#5 Why Should Investors Take A Closer Look At Fu Yu Corp?
Over the past 1-2 years, we have undergone significant changes that are now beginning to show positive results. These efforts align well with broader economic trends, including the recovery in the manufacturing sector that is driven by growing demand in consumer electronics and healthcare, as well as the beginning of a global inventory restocking cycle.
We have a strong product pipeline, and our Smart Factory is poised to capture the rising demand for high-precision components, especially in the biomedical field.
Our robust balance sheet also provides a solid foundation for future investments and expansion, which will further drive Fu Yu’s financial performance in the years to come and present Fu Yu as an attractive investment opportunity.
Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 13 August 2024 and republished with permission. You can read more on Fu Yu Corporation (SGX: F13) on the SGX website.
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