KUALA LUMPUR: Gemilang International Ltd (GML) has clinched a single largest order from Uzbekistan to supply 190 completely knocked down (CKD) bus body kits.
In a statement today, the Johor-based bus and bus body manufacturer said the contract was awarded in February 2022 and would likely be completed in October 2022.
GML said the secured award from Uzbekistan would position the Malaysian company as a strong player in the emerging Central Asia market while helping the company venture into neighbouring countries such as Belarus and Kazakhstan.
The contract was also awarded less than a month after the GML group won its biggest order to deliver fully-electric school buses to California, United States (US).
To recap, GML has delivered more than 160 bus body kits to Uzbekistan since 2015, making the country an important growth market for the group.
GML expected the latest contract to be a major revenue contributor for the company this year.
Uzbekistan is fast-tracking the upgrading of its infrastructure and connectivity, including transportation, and the Hong Kong-listed GML anticipates more future tenders from the country.
The company is optimistic of continuously benefiting from the infrastructure developments in Uzbekistan, leveraging on its proven track record as one of the leading bus and bus body manufacturers in Asia.
GML secured the latest contract via competitive tender bidding undertaken with GML's partners, including chassis suppliers and local bus body manufacturers.
The main winning factor is GML's pre-engineered aluminium body kits which are fabricated using craftsmanship originating from Switzerland.
The materials used for body structure consist of high durability 5000 – 6000 series aluminium alloy (similar to aviation and railroad standards).
This was the essence of three decades of industry experience, and GML aimed to deliver consistent quality and clean, simple and environmentally friendly solutions.
The contract also demonstrated GML's buses, and bus bodies can meet regulatory and statutory safety requirements in the destination countries.
GML chairman and chief executive officer Pang Chong Yong said Uzbekistan is one of six focus markets this year, apart from the US, Australia, Singapore, Malaysia and Hong Kong.
"The latest contract is a repeat order from Uzbekistan and is recognised as a springboard for us to grow further in the region.
"We are pleased as this repeat order at a bigger quantity implicitly shows the trust from the country in Malaysian craftsmanship and product quality," he said.
Pang said the company had planned to deliver high-quality products consistently and further build a strong and competitive presence in the market, depending on future tenders from Uzbekistan.
"GML is actively working on securing new projects in the six countries as mentioned earlier."
Additionally, he said many tender activities had been delayed in the past two years since the pandemic.
"We wish to see tenders coming from our target markets this year as the economy is recovering. In addition, with commitments from many neighbouring countries to reduce and eventually neutralise carbon emission, we expect more electrification in transportations."
He said GML was ready to offer environmentally-friendly solutions for the transition.
"As Malaysia is our base, we hope that our continued growth would allow more economic advantages for the country over the long run such as increased job opportunities, capital investments and innovations in the emerging electric vehicle (EV) segment."
While GML focuses on manufacturing and supplying completely built-up (CBU) buses, Pang said the company saw rising demand in the CKD segment as more countries, especially the US.
"US is looking to create or reshore domestic manufacturing activities. This trend opens new opportunities for GML internationally, especially with the growing global interest in EV buses."
He added body kit solutions were distinctive in the bus manufacturing industry and were invented in-house by GML.
"Domestically, more than 2000 units have been delivered in CKD form. Through CKD body kit solutions, the group's business partners will be able to assemble buses in their regions and enjoy the reduced total cost of manufacturing and lower initial capital investments."
In addition, he said these companies could receive incentives and support from their local governments for promoting localisation while the final assembly works are done locally.
GML has designed and manufactured bus bodies and assembled buses for over 30 years based in Johor.
Its recent projects in the domestic market include Sarawak's first electric city bus for Kuching Metro and an electric bus pilot project by the Sabah government for public transport.
It is also notable that GML has supplied buses for Go KL, Rapid KL, Rapid Penang and MRT feeder buses for the past 13 years.
