HP to invest RM1b in Penang, expected to sign land deal with state govt

GEORGE TOWN: Hewlett-Packard (HP) will invest over RM1bil to set up a manufacturing facility to produce printer heads for high-speed inkjet printers.

Sources in the electronic industry told StarBiz that HP would sign a deal with the state government by the end of this month to acquire a property estimated to be about 20.2ha in Batu Kawan, Penang, to set up the plant, which would produce the integrated circuit die – used in the head of high-speed inkjet printers – with imported wafer.

It is learnt that the plant would engage over 1,000 workers and generate outsourcing jobs particularly for the local small and medium enterprises involved in precision tooling and metal fabrication businesses.

The plant is in line with HP’s plan to open a new graphics solution centre of excellence and expand its ink manufacturing facility in Singapore, which is scheduled to open next year.

In June, Penang Chief Minister Lim Guan Eng said Penang could expect another wave of investments from HP and Seagate in the manufacturing sector soon.

Lim had also said the multinational corporations (MNCs) would be enhancing their investments in the state.

In August, Lim said the US MNC Seagate would invest RM1.05bil in Penang. Seagate, which manufactures hard disks and provides data storage solutions, would purchase 40 acres (16.18ha) with the option to purchase another 30 acres (12.14ha) at the Batu Kawan Industrial Park.

HP’s recent split into two companies will have no impact on the decision to set up a manufacturing facility in Batu Kawan, according to a source.

HP recently confirmed its plans to split into two companies – one to focus on personal computer and printer business and the other on enterprise services, which is a faster growing segment.