Singapore-listed GP Industries announced, on Nov 13, that it is shifting its production capacity to its manufacturing facilities in Southeast Asia to navigate US tariffs and rising geopolitical tensions.
The group currently operates several facilities in the region — three in Malaysia, two in Vietnam and one in Thailand. GP Industries also has two other plants in the UK.
According to the company, the diversification of its manufacturing network is proving to be a “crucial and timely competitive advantage, offering operational flexibility amid the changing tariff landscape”.
Its production capacity in Southeast Asia will be ramped up to serve the US market while its facility in China will focus mainly on its European and Asian markets. This is to streamline its supply chains to meet its country-of-origin requirements and main cost competitiveness.
After higher initial costs from diversifying its production to Southeast Asia, the company says its margins have increased due to better utilisation, lower commodity costs and optimised supply chains. For instance, gross margin for batteries in FY2025 rose to 25%.
GP’s parent company, Hong Kong-listed Gold Peak Technology Group, is already planning a multi-million-dollar investment in Johor to produce next-generation battery to support data centres. On Feb 20, United Overseas Bank (UOB), presented a letter of intent (LOI) to Gold Peak, where the bank will facilitate the company’s investment in the Johor-Singapore Special Economic Zone (JS-SEZ). At the time, Gold Peak said it intended to invest RM670 million ($202.4 million) in the JS-SEZ by establishing a state-of-the-art manufacturing and research and development facility producing batteries with next-generation technologies.
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“Over the past three decades, GP Industries has shown resilience and maintained steady growth through financial crises, a global pandemic, geopolitical tensions, and transformative technological changes including the ongoing AI revolution,” says Victor Lo, chairman and CEO of GP Industries.
“We are confident that we will continue to demonstrate the same strength, adaptability, and commitment to innovation that have sustained our growth and performance through times of change,” he adds.
In addition, Lo believes the company, as well as its parent company, Gold Peak, has the potential to “scale significantly” in Johor in the next five years.
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“We chose Johor for its fast-track investment approvals, logistical proximity to Singapore, skilled workforce, and a supportive business environment, ensuring both operational efficiency and scalability for future growth,” he says.
He adds that GP Industries plans to further invest in research and development (R&D), enhance operational efficiencies and widen its network of audio experience centres globally.
Reflecting on GP Industries’ 30 years, Lo says succession has always been a priority to him. “We have brought fresh perspectives into senior management, strengthened our board with independent directors, and invested in development programmes to ensure our values and vision are carried forward.” This is the company’s 30th year of incorporation and listing in Singapore.
Shares in GP Industries closed 2 cents higher or 4% up at 52 cents on Nov 13.
