C2SATs Board has decided to establish its own subsidiary company, C2SAT Asia Pacific Pte Ltd, based in Singapore, to enable a stronger focus on the rapidly growing South East Asian markets.
Besides from the plans to establish the new subsidiary company in Singapore, C2SAT has also signed an Letter of Intent with Fong’s Engineering and Manufacturing (Pte) Ltd in Singapore, one of Singapore’s leading precision mechanics companies, to establish local production of C2SATs antennas. With local production in Singapore C2SAT can ensure short and cost-effective deliveries to South East Asia.
Furthermore, significant cost benefits are likely to be achieved. The production in Singapore is expected to be launched by the first quarter of 2010.
Also new investments in Indonesia
C2SAT has also secured continuing close cooperation with PT AJN Solusindo in Indonesia, which C2SAT, previously via Maritime Communications Pty Ltd, delivered antennas to. C2SAT has decided to suspend all cooperation with the Maritime Communication Pty Ltd, which since 2007 has been C2SATs exclusive distributor in the South East Asian markets and Australia and New Zealand, where the Maritime Communication Pty Ltd have not fulfilled their commitments.
An additional supply of antennas related directly to the PT AJN is expected to take place in autumn 2009.
Confident President
Earlier this year C2SAT sat up of clear objectives: The C2SAT should produce at least 50% sales growth per quarter over a two year period, to C2SAT to reach positive cash flow by 2010 and within two years be established as one of three global antenna manufacturers with a market share of 15% of growth.
“I am completely convinced that we will achieve these goals. With this strong effort, we now have a strong marketing and service organization in place in South East Asia, perhaps our most important geographic market, “says Fredrik Nygren, President of C2SAT, and adds:
“In addition to market advantages with the establishment of the new subsidiary company and the establishment of the new network with several distributors in the region, provides the option of local production further reduce costs associated with the manufacture of our stabilized antenna system. I am thinking particularly of C2SATs C-band antenna, where we do well in the competition. The drive is associated with a lot of work but we feel well prepared and all parties are ready.”
The growth in number of installed VSAT antennas in the region was 30% in 2007 and predictions show that growth will continue to grow in the coming years.
