Ferrotec to set up RM500mil plant in Kulim


Senior Minister and International Trade and Industry Minister Datuk Seri Azmin Ali said Ferrotec’s decision on choosing Malaysia as a destination of choice for its high-tech manufacturing facility speaks volumes of the country’s talent readiness, strength and capability of its manufacturing and business ecosystems.

PETALING JAYA: Ferrotec Holdings Corp, a global supplier of materials, components and precision system solutions, has plans to establish a new manufacturing facility at Kulim Hi-Tech Park, Kedah.

In a statement, the Malaysian Investment Development Authority (Mida) said the plant will undertake electromechanical assembly and advanced material fabrication for semiconductor equipment.

Mida added that the plant will meet customer needs while also expanding the group’s business globally.

“The plant is expected to kick start its operation in 2023. With a total investment expected to exceed RM500mil and at a facility of more than 80,000 sq ft, the project is anticipated to create approximately 250 high-value jobs for Malaysians.

“As a tier-one company supplying to multinational corporations in the semiconductor industry, the company has committed to provide training to Malaysian employees at the factories in Japan and the United States.”

In the same statement, Senior Minister and International Trade and Industry Minister Datuk Seri Azmin Ali said Ferrotec’s decision on choosing Malaysia as a destination of choice for its high-tech manufacturing facility speaks volumes of the country’s talent readiness, strength and capability of its manufacturing and business ecosystems.

“Indeed, Ferrotec’s presence in Malaysia will turbocharge our local talent development and strengthen our value proposition in the global supply chain.”

He also stressed that Ferrotec’s investment will open up greater possibilities for other global companies in the industry to follow suit and invest in Malaysia.

Azmin added that this major investment is poised to realise Malaysia’s long-term aspiration of becoming a global manufacturing hub.

In 2021, the machinery and equipment (M&E) industry received 48 approved projects worth RM1.67bil in investment from both foreign and domestic sources.

Mida said these projects are expected to generate 2,500 employment opportunities, with about 56% of employees in managerial, technical and engineering-related skills.

“The specialised M&E for specific industries sub-sector is the largest contributor of investment for 2021, with 16 projects totalling RM592mil approved,” Mida said.

Ferrotec (USA) Corp chief executive officer Eiji Miyanaga said Ferrotec has seen increasing demand for its products and services in Asia.“With this new production facility, we expect to provide expanded capacity, improve business continuity for critical activities and most importantly, ensure that our customers do not experience disruptions to their supplies from us.”

Separately, Mida chief executive officer Datuk Arham Abdul Rahman said it was encouraging to have a company like Ferrotec establish a plant in Malaysia.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Frrotec , plant , Kulim , Azmin Ali ,

   

Next In Business News

China's central bank renminbi liquidity arrangement includes Malaysia
Global M&A braces for dry spell as boardrooms put expansion on hold
CPO futures market to see technical correction next week
Fed policymakers embrace more rate hikes, markets a little less
Tokyo Gas begins synthetic methane trial using green hydrogen
Bruised US stock investors brace for more pain in second half of 2022
An ‘AAA’ move?
A ‘Volcker recession’ in the making
Real stress hurts bank buybacks
Masayoshi Son’s eternal optimism

Others Also Read