Industrial News Updates
Seacera Expands Production Capacity
Seacera Group Bhd, a leading local manufacturer of vitrified homogeneous porcelain tiles, will invest RM50 million to relocate its tile manufacturing plant from Selayang, Selangor to Kamunting, Perak, which will see a four- fold increase in its production capacity.
Seacera Group Managing Director Zulkarnin Ariffin said the first phase of the plant would be at least twice its current production capacity of 6,000 sq m. The new production line is expected to be operational by end-2015.
He said to-date there is no tile factory in State of Perak for the time being serving the northern region, which is the group’s second-largest market after the central region.
Meanwhile, the group is focusing more on the construction and property development sectors and plans to bid for jobs related to buildings, infrastructures and highways to complement its tiles business.
SAM Malaysia to Expand Operations
SAM Engineering & Equipment (M) Bhd, a subsidiary of Singapore Aerospace Manufacturing, plans to invest RM200 million to expand its operations over the next two years to meet rising demand for aircraft components.
SAM Group Managing Director, Jeffery Goh Wee Keng said the expansion would be in line with its plan to position the group as a global supplier of aircraft parts.
The group is also expected to hit revenue of RM1billion in two to three years, positioning it as a leading aircraft components supplier in the Asia Pacific region. In five years, the group aims to build up a presence in the US and Europe with an estimated annual turnover in excess of RM1billion.
Goh said the group expects to generate more than 70% of its revenue from its aerospace business in two years from the current 63%, while targeting to achieve the 80% level, going forward.
SAM which specializes in making aerospace engine casing is exploring opportunities to acquire aerospace manufacturers of wing and structural components for aircrafts.
The group focuses on three businesses- automation, equipment manufacturing and engineering solutions.
Major Investment by Hewlett-Packard in Penang
Penang is expected to receive a major investment from Hewlett-Packard (HP) as the company intends to invest over RM1billion to set up a manufacturing facility to produce printer heads for high-speed inkjet printers.
HP would sign a deal with the state government by the end of October 2014 to acquire a property around 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.
The new investment is expected to generate over 1,000 employment opportunities and create outsourcing jobs, particularly for the local small and medium companies involved in precision tooling and metal fabrication businesses.
HP’s plant is in line with its plan to open a new graphics solution centre of excellence and expand its ink manufacturing facility in Singapore, which is scheduled to open in 2015.
Penang’s Chief Minister, Lim Guan Eng said in June that the state could expect another wave of investments from HP and Seagate. According to Lim, other multinational corporations (MNCs) in the state would be increasing their investments.
In August, Lim said the US MNC, Seagate would be investing RM1.05 billion 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 BatuKawan. The company 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.