UMW Holdings Bhd is looking to double its manufacturing capacity for Toyota cars from the current capacity of 50,000 cars a year upon the completion of the company's new manufacturing plant in 2019.
The Star Online reported that the new plant in Bukit Raja will kick off with a production capacity of 50,000 cars a year and subsequently ramping it up to 100,000 cars at maximum capacity.
Group president and chief executive officer, Badrul Feisal Abdul Rahim, said Toyota will be introducing four new facelift models in the second half of the year, while the new plant will also enable the company to produce more varieties of passenger cars.
While setting a sales target of 70,000 units of Toyota cars, its Perodua brand was earmarked to sell 202,000 units this year.
UMW will also see the production of the first fan case for Rolls Royce engines specifically for the Trent 1000 engine in the B-787 Dreamliner aircraft and the Trent 7000 engine for Airbus A30 Neo.
Badrul said UMW has completed its pre-production words at the manufacturing facility within 16 months.
"Revenue contributed from this contract will not be as significant this year because the plant will commence operation beginning October," said Badrul, according to the report.
"We expect to break even or make a small profit by 2019 while we aim full production to be achieved by 2021," he added.
He added that the total production capacity of the fan cases yearly at the plant stood at a triple-digit figure.
UMW recorded a 21.6% rise in its net profit for the quarter ending 31 March in comparison to the same corresponding period last year.
The company, however, recorded a slump in its pre-tax profit to 31.72% to RM14.38 million with losses attributed to its oil and gas arm, UMW-OG.
The CEO said the first half of the company's financial year ending 31 December 2017 earnings would carry losses from the oil and gas arm.