SERENDAH: Following T7 Kilgour Sdn Bhd commitment to invest RM200 million to develop a specialized metal treatment plant for the aerospace industry, Malaysia is now in par with major global nations in aerospace investments.
The plans, being the first of such plant in Southeast Asia to be built within the UMW High Value Industrial Estate Park in Serendah, Selangor, is expected to commence early next year.
T7 Kilgour is a joint venture between T7 Aero Sdn Bhd, a subsidiary of T7 Global Bhd with KOV Limited, a UK-based aerospace company.
T7 Global Bhd's executive chairman Datuk Nik Nikzhul Thani N Hassan Thani said the investment involves land acquisition, factory building and training of employees.
He said the metal treatment plant, developed on a 0.8 hectare site, will offer nearly 200 jobs.
The company expects 80 percent of the work in the plant to be filled by local people before rising to 100 percent in the next five to 10 years.
"Since the aerospace industry is a high technology industry, we need to bring in external experts for a start.
"In the next five to 10 years, we hope to have technology transfer to local people before the job is fully filled by local workers," he told reporters after groundbreaking ceremony of the plant's construction here today.
The opening ceremony was officiated by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Also present were International Trade and Industry Minister Datuk Seri Mustapa Mohamed.
Commenting further, Nik Norzhul Thani expects the aerospace sector to contribute to the company's 30 per cent non-oil and gas (O&G) earnings as soon as it operates at full capacity.
The plant is capable of generating revenue of about RM180 million at full capacity.
"The oil and gas (O&G sector is still a major contributor to the company's earnings for the time being, but we hope to reduce the dependence on this sector of up to 70 percent in the future.
"The company has not set any time frame when this target will be achieved," he said.
On whether T7 Kilgour has received orders so far, Nik Norzhul Thani said the company has received some inquiries but is still not ready to accept any orders.
This is because, he said, as there could be unavoidable delays in the construction of the plant and orders might be affected due to it.
"We want to be in a position that when we finalise orders, we want it to be in line with the production process," he said.