FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
11
MANAGEMENT DISCUSSION
AND ANALYSIS
Overview
Our Group is the industry leader in surface treatment solutions and possesses unique combination of surface and
mechanical engineering capabilities for servicing and machining mission critical equipment and its components.
We have our presence today in Malaysia, Singapore, Thailand, Philippines, Taiwan, China, Myanmar and Indonesia;
with a combined workforce of 958 employees, 17 service facilities in 7 countries and are certified with, amongst
others, ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 and BS OHSAS 18001:2007.
We are backed by solid infrastructures, capabilities, technologies and know-how having served a very wide spectrum
of industries ranging from oil and gas, refineries, marine and offshore, power generation to semiconductors/hard-
disk manufacturing support services, renewable energy and many more.
Our core expertise is in the application of specialised surface engineering solutions and improvements of coatings
quality for specific industrial applications through materials research and modification of micro structural surface
properties. Thermal spray coating technologies - the flagship technology of Frontken’s surface engineering
capabilities, enable deposition of virtually any material onto surfaces for increased performance, protection, lifetime
extension and other highly specialised functions.
Our Group has an established reputation and foundation for quality, prompt delivery and reliable service in this
industry and also has proven track records in providing mission critical surface engineering projects that are rapidly
architected, engineered and delivered with speed and reliability, as well as demonstrated engineering capabilities,
financial resources and human capital in completing projects of any size given by the customers.
Looking at year 2014, the performance of our businesses had been significantly better in certain countries while some
had decreased. We continue to address the challenges facing each business in each country. We are constatntly
assessing our business models and will
improve or innovate the way we conduct
our business in the world today. Our
growth strategy remained the same i.e. to
continue to enhance our service level, to
create opportunities for growth, increase
efficiencies with the view to keeping
cost low and to focus on increasing our
customers’ base by adding value to the
works we performed.
Our business in Malaysia for year 2014
saw a significant increase in our revenue
due to our project in Tanjung Bin. This is
a good sign that the business is picking
up momentum and will bode well for us
into year 2015. Our investment in TTES
has also benefited our books. We will continue to maximise on our strengths in our business with faster delivery of
services and focusing on the key areas for our projects that will grow our business. We will also build our business
in the focused areas and enhance our services to achieve customers’ satisfaction. We will diligently review our
cost management and proactively make the necessary adjustments to match demand.
We are pleased with the performance in Taiwan. The business has been increasing gradually in line with the robust
semi-conductor market. We remain optimistic of the semiconductor industry which will continue be a growth area in
year 2015. We are aware that the competition is stiff and the market may make an adverse turn which may impact
our business.
