MyLED Opto Technology Sdn Bhd (MyLED Opto) today sealed contracts with two Japanese-owned companies to supply light
emitting diode (LED) lighting to vending machines in Japan, with sales expected to reach RM800 million over the next five yars.

The contracts from Kirutorisu Tech Sdn Bhd and ATOTIS Co Ltd will enable MyLED Opto, a subsidiary of Ho Wah Genting Bhd, to penetrate into the Japanese vending machine market.

MyLED Opto Chief Executive Officer Jetson Lai said the Japanese partners have estimated that based on their monthly orders of 300,000 units of LED lights, the estimated accumulated order value will be in the range of RM800 million over the next five years (2013-2018), given the high number of vending machines and the strict LED lighting replacement policy in Japan.

"With these orders, the land of the rising sun has become our biggest overseas market.

"With the contracts signed today, our monthly production is expected to increase significantly from 30,000 units to 100,000 units by the end of 2012 and gradually to 300,000 units thereafter," he told reporters after a signing ceremony with its partners here today, witnessed by Second Finance Minister Datuk Donald Lim Siang Chai.

Lai said according to the Japan Vending Machine Manufacturers Association, Japan had over five million vending machines in 2011, generating about US$67 billion in revenue.

In addition, he said, MyLED Opto plans to invest RM175 million to diversify its upstream activities and commence the production of LED components in the second quarter of 2013.

"We are planning to produce 10 million pieces of LED components per month to cater to the rising demand for our lightings and our clients.

"With our continuous reserach and development efforts in design and manufacturing processes, we expect to bring prices down substantially and attract more buyers.

"While we expect that we can bring the pricing as low as 20-30 per cent from the current market price of LED lights after the commencement of the components, it will enable us to compete with the Chinese manufacturers in terms of pricing in China and worldwide," Lai said. -- Bernama