BUKIT KAYU HITAM (March 7): Aerospace Composites Malaysia Sdn Bhd (ACM) is targeting US$61 million (RM249.15 million) to US$65 million in revenue for 2019.

Speaking to reporters at its 1.5 millionth part milestone celebrations at its plant today, ACM managing director Jose Garza said the group is expecting to continue a two-year trend of making more products in its facility in 2019.

"We are in the midst of negotiations for some contracts. Boeing is committed to growing ACM, which can make announcements soon.

"Boeing and ACM are working to extend their contracts for parts of the aircraft," said Garza.

ACM is a 50-50 joint venture (JV) company between The Boeing Company and US industrial materials company Hexcel Corp that was set up 2001.

When asked about the potential economic downturn that many are expecting on global and domestic level, Garza said the aerospace industry is robust.

"It might be the case that there is a slowdown in the greater economy. However, in the aerospace industry we don't anticipate it (a potential slowdown) affecting us," said Garza, adding that the component manufacturer has guaranteed work lasting beyond 2021 to 2024.

He added that the group is looking to extend some of its contracts further to between 2026 and 2028.

Garza elaborated that ACM is producing approximately 13,000 parts per month and that it is expecting to increase the component manufacturing rate for Boeing's 737,777x and 787 models.

He said ACM delivered 150,000 components in 2018.

"A lot of our demand is for spare parts of the aircraft. We usually deliver more than what we planned every year.

"We produce main components of the flight surfaces — part of the wings — small to medium size wings panels," said Garza.