private placement of 543,047,900 new GNB shares at a price of not lesser than RM0.200 to be fair to the existing shareholders of GNB.
Based on an expected issuance price of RM0.220 per share, the group expects to raise a total RM108.61 million, in which RM25.0 million shall be utilized for purchase of building materials, another RM25.0 million for repayment of contractors, and RM21.8 million for injection of fund into TCS SS Precast Construction Sdn Bhd as the group’s effort to venture into Industrialised Building System (IBS).
1. Capacity expansion through investing in new machinery i.e. injection machines, CNC machines, fully and semi-automated machines.
2. Process improvements via the adoption of Just-In-Time (“JIT”) approach to reduce the usage of production floor area and storage space (minimize inventory holdings) and streamlining manufacturing processes.
3. Enhancement of tracking systems covering the materials store, production, and logistic areas to reduce downtime and defect issues.
So I believe they still need lots of workers even though they could automate some of the processes. As for the business prospect, I agree with you that it is easy for the OEM to register double digit growth for smart audio and musical instrument section provided the OEM is attached to the right customer. FPI has been allowed to work full swing and achieving higher revenue in Q4 qoq and yet is still facing shortage of labour. If OT is able to solve the labor problem they wouldn't have mentioned this in the report. That means, order in 2022 should be considerably higher than 2021. And I believe Taiwanese's capability to solve problem.
I think like many other EMS, FPI too is hiring both local and foreign workers but I do not know the ratio. To achieve a high degree of automation might not be realistic for complicated assembly because the product design is determined by customer and the design always change because of the need to produce new models every year. Also, due to pressure to complete product development in very limited time, a designer might not put as much effort to think of manufacturability of the design but to quickly finish the project.