Aerospace firm investing RM500mil in Penang

GEORGE TOWN: Singapore Aerospace Manufacturing (SAM) is investing over RM500mil in an aerospace component-manufacturing facility in Penang.

Chairman Philip Yeo said the amount was for the first two phases of the facility, known as Aviatron (M) Sdn Bhd, on a 17.5-acre site in Bukit Minyak Science Park. “Both phases will be operational by 2012 and is expected to create some 600 jobs,” Yeo said.

He said this at a briefing after Aviatron ground breaking ceremony by International Trade and Industry Minister Datuk Seri Mustapa Mohamed. Also present was Penang Chief Minister Lim Guan Eng.

Yeo said upon completion of the first phase, some RM40mil worth of jobs would be outsourced to local small and medium vendors.

The first phase of Aviatron will manufacture machined parts for Boeing 787 Dreamliner, Airbus 350 XWB, Bombardier C-Series and Mitsubishi Regional Jet.

“We have recently been awarded a long-term contract by Goodrich to produce nacelle major machined parts. There are plans for a third phase of Aviatron,” Yeo said.

Mustapa said that since 2005, the Federal Government had approved about RM3.1bil worth of aerospace investments in Malaysia.

“There are now 180 aerospace companies, large and small in sizes, operating in the country,” Mustapa said.

Mustapa said two entry-point aerospace projects under the Economic Transformation Programme for this year would generate some RM16bil for the economy, creating about 32,000 jobs.

Lim said the global aerospace market was forecast to grow by 5.1% over the next 10 years. “The global aerospace market size is expected to hit US$301bil by 2018. Next-generation aircrafts such as Boeing 787, Airbus 380 and Airbus 350 are expected to drive the growth,” he said.