Company cannot depend on euro-denominated materials as the currency has appreciated, says Rameli.

Putrajaya : Fresh from winning the railway double-tracking electrification job for the Ipoh-Padang Besar stretch, Ingress Corporation Bhd is confident of landing the RM400 million Seremban - Gemas electrification project and the Klang Valley light rail transit extension job.

"We are in a good position to win the bids, given our experience in undertaking electrification works at a lower cost compared to foreign companies, "Bernama quoted its executive vice-chairman Datuk Rameli Musa as saying to reporters after the annual general meeting yesterday.

"Next year, the focus will be on the railways as the goverment is expected to spend more on infrastructure," he said.

On Monday, Ingress' 49% associate company Balfour Beatty Rail Sdn Bhd, in a joint venture with Ansaldo STS Malaysia Sdn Bhd, secured a RM1.0 billion contract to provide the rail system electrification for the Ipoh-Padang Besar double-tracking project from a joint venture of MMC Corp and Gamuda Bhd.

The joint venture had completed a similar contract for the Rawang-Ipoh double-tracking project.

Rameli also said that Ingress would stop procuring raw materials from Europe, especially for projects such as the railway double-tracking and in its production of automotive components.

Apart from rail electrification, Ingress also is an original equipment manufacturer (OEM) of automotive component parts with Proton and Perodua among its customers.

Rameli said the group was taking steps to source raw materials, especially copper, from other countries and had taken some provision for potential rising costs to its double-tracking project. He said the European market supplied some 10% of raw materials and parts to the group's operations in power engineering, railway and automotive.

"The euro has appreciated and as such we cannot depend on euro-denominated materials," Rameli said.

He said the group would try to pass part of the higher costs of raw materials to the original equipment manufacturer (OEM) for its automotive operations.

"Copper is a key component in our supply of wire harness to car manufacturers such as Perodua and Proton," he pointed out.

On its automotive and automotive components manufacturing (ACM), Rameli said the division in Malaysia would supply wire harness for Proton Persona, Proton Gen.2 facelift and Proton New Saga, which contribute about RM50 million in revenue to the group's financial year ending Jan 31, 2009.

"Our ACM in Thailand will be involved in the supply of wire harness for the new Honda Jazz and Honda City as well as the new Mitsubishi," he said, adding that it would also commence supply of wire harness for the new Daihatsu model under its ACM in Indonesia soon.

Expressing confidence, Rameli said the group should be able to turn around and was expected to achieve double-digit growth in revenue for the next three years through new product lines and markets.

For the financial year ended Jan 31, 2008, the group had a net loss of RM9.81 million as compared to a net loss of RM7.89 million the year before. For the period under review, its revenue rose 11.5% to RM398.86 million from RM358.77 million previously.

Rameli said the power and engineering division has to-date secured RM80 million projects, adding that some projects to be undertaken this year included transmission line projects from Gelang Patah to Perling in Johor, and the gas-insulated switchgear supply and installation for Tasek in Perak.