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History

2010
A strategic partnership between Nikon Corporation was established through the investment of RM34 million in a strategic private placement of 10% shares in Notion VTec Bhd in order to preserve the supply of cam barrels for SLR Interchangeable lens. The funds raised will be utilized for building a new factory in Rojana Industrial Estate, Ayuthaya, Thailand to better serve Nikon.

2011
In 2011, Thailand witnessed its worst flooding in half a century, leaving behind severe impairment to the country’s economy, industrial sector and society.

Notion’s Rojana factory was flooded under 9 feet floodwaters for a few months resulting in production loss and business interruption. But the Klang factories benefited from this rare tragedy due to many component suppliers being flooded out and unable to produce their components.

The whole industrial estate has since been made less prone to flood by a perimeter bund of more than 10 feet height.

2012
On 31 Dec 2012, a fire had occurred in a rear building of its main manufacturing plant in Klang with the loss of about 100 CNCs and affected 25,000 sf of its production space.

There was a disruption to Kaiten Precision Sdn Bhd’s business for up to 6 months while the fire claim commenced. Finally the insurers reimbursed the company more than RM30 million for the fire loss as well as business interruption loss.

Steps were taken to ensure such an occurrence was eliminated with more regular monitoring.

2014
An investment in Alcyone Silver Mine, Australia in 2013 which was an effort in diversification turned sour when the silver price continued to be range bound at below cost of production and due to cashflow constraints in the mine and inability to raise fresh funds for Alcyone, the mining company was liquidated by its bond holders. Notion learnt a bitter lesson never to enter into something outside its expertise and impaired its RM15 million investment.

2015
If there is such a thing as bad decision making all happening in a row, then Notion’s foreign exchange strategy of hedging using long term 24 months derivative contracts resulted in the company selling forward its USD receivables against the strong USD currency uptrend resulted in RM44 million losses in FY2015.

It was a hard period of soul searching and cashflow constraints and a most difficult period of our history.

We pledge never to be exposed in such contracts which were expensive to terminate. It was yet another bitter lesson.

2016
FY2016 was a turnaround year and the derivative contracts finally expired in September 2016 and each quarter the company was profitable except for Q3 which had an once off deferred tax of RM10 million due to the tax treatment of FY15 s forex gains and losses.

The management having gone through such a history of up and down, is on a renewed spirit to improve, innovate and seek new businesses and stay focussed on precision machining and its related engineering expertise.