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The decision to construct a factory in Pasir Gudang industrial area in Johor Malaysia due to several factors such as the geographical location, port facilities and short distance from UIS convenient for personnel to access to destinations overseas. |
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The value of the initial investment was approximately Ringgit Malaysia 10.5 million with production capacity for HDX/AD products is 600 Kiloliter per month. Currently our maximum capacity is 1,000 Kiloliter per month. |
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In year 2000, the average export increased to 252 KL/month. The result after that was sluggish for two years due to IT recession, but started to recover from 2003. The average shipment reached a new high in 2006 at 534 KL/month. It increased greatly for two years from 2007 due to increase in demand for product for hard disk substrates. However in September 2008, due to Lehman Brothers bankruptcy shipments fell dramatically to 312 KL/month. |
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From 4th quarter of 2009 shipments recovered back to an average of 419 KL/month in 2010. Conditions were good in early 2011 but later declined in the second half due to flooding in Thailand in 2012. |
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Sales increase dramatically in 2007, as mentioned above, but factors such as the rising prices of nickel meant that the profit and loss declined and we experience a loss, for the first time in 15 years history of UMM. |
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The main raw ingredients UMM uses are nickel sulfate and sodium hypophosphate, but nickel is a rare metal and target for speculation and thus the fluctuation on the price is large. Roughly the cost price was 5,000 USD/ton when UMM first started operations, but in May 2007 had increased to 54,000 USD/ton. |
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Sodium Hypophosphate has also been affected by China, where the resources of it are unevenly distributed. In 2008, a new materials policy put 120% export tax on yellow phosphorus had a great impact on hypo phosphorous acid manufacturers in Japan. Thus has to switchover to Chinese manufactured sodium hypophosphite and UMM also began to use Chinese products for major users from 2010 to 2011. To overcome the issue UMM had to change our strategy for purchasing and risk management with appropriate stock control and purchasing from two companies. |
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UMM was established for the purpose of manufacturing chemicals for hard disks. To survive we diversify our products where in May 1999 we ship out the NUP series for general purpose electroless nickel plating. Later continue expanded with NEL series starting in March 2000 and KTY series in June 2005. We continue with SX series and NIMUDEN 5X in November 2006 follow up with NIMUDEN A, B, C in May 2012 and LPX in February 2013. |
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Next stage we advance into printed circuit related products NPR series in October 2005. The following year May 2006 we started the ELC series (Electroless copper plating) and next in July 2010 we started the Thru-Nic-AMT series. In 2007, we start manufacture CHC hard chrome plating additives. In August 2010, UMM R&D developed first HEBAT chrome CLC and shipment to China began in early September 2012. |
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The ratio of each products for UMM shipments in 2012 was 75% for hard disk, 17% for general purpose electroless nickel, 5% for printed circuit board related products and 3% for others. |