GEORGE TOWN: Three renowned large local companies (LLC) in the equipment manufacturing supply chain are expanding their respective footprints in Penang.
The three, namely Greatech Technology Bhd (Greatech), Pentamaster Corporation Bhd (Pentamaster) and UWC Bhd (UWC), are collectively taking up 14ha acres in Batu Kawan Industrial Park and will be investing a total of RM520 million in their expansion projects.
All three projects are slated to commence in the first quarter of next year and are expected to create up to 1,300 new job opportunities for local talent when completed and fully operational.
Chief Minister Chow Kon Yeow said the decision by the three companies to reinvest in Penang demonstrated their continued confidence in the state's robust industrial ecosystem.
"I am glad that today, Penang not only has a solid reputation as a preferred location for MNCs but also known as an entrepreneurial state that provides a conducive environment for homegrown companies to scale and thrive.
"In fact, Penang is home to the majority of the LLCs in the electrical and electronics (E&E) and machinery and equipment (M&E) sectors.
"Over the past five years, we have witnessed tremendous growth of these LLCs, serving global players across various industries," he said at the investment announcement at the Penang Development Corporation (PDC) here today.
Also present were special investment adviser to the chief minister Datuk Seri Lee Kah Choon, PDC chief executive officer Datuk Mohd Bazid Abd Kahar, InvestPenang (IP) chief executive officer Datuk Loo Lee Lian and Malaysian Investment Development Authority (MIDA) Penang director Muhd Ghaddaffi Sardar.
Greatech chairman Ooi Hooi Kiang, Pentamaster executive chairman Chuah Choon Bin and UWC executive director and group chief executive officer Datuk Ng Chai Eng were also present.
Elaborating, Chow said Penang's domestic direct investment (DDI) climbed to a decade high of RM3.6 billion in 2020, representing 25 per cent of the state's total direct investment.
In the first half of 2021, he said local companies contributed RM700 million of direct investments, equivalent to 54 per cent of the total direct investments in Penang.
"The LLCs and SMEs, in particular, have been critical in promoting the growth of the M&E sector in the state.
"Penang now has a comprehensive supply chain in the M&E and automation domains, which is led by local companies with a diverse range of core competencies, such as Greatech, Pentamaster and UWC.
"I am hopeful that the continuous growth of the LLCs will translate into more business opportunities and cultivate knowledge transfer to the local SME, allowing them to be nurtured and more LLCs to be established in Penang," he added.
With a combined market capitalisation of almost RM20 billion, the three LLCs have grown tremendously in the last five years in terms of revenue, clientele, and their respective product portfolios to include higher value add and upstream activities.
Meanwhile, Ooi said that with a total built-up area of 265,000 sq ft, the new facility, Batu Kawan IV, would house high-value designing and assembly activities for new products that cater to emerging industries, namely life science and semiconductor.
"We target to complete the construction by the third quarter of next year.
"The new facility will create 500 new jobs, of which 300 will be engineers and the remaining 200 will be assembly workers and machinists," she said, adding that once the new facility come on stream, Greatech would staff 1,200 employees in total.
Chuah, who expressed his gratitude to the Penang government, InvestPenang, MIDA and PDC for creating a business environment that supports local investments, particularly in the advanced automation industry, said the new facility would be Pentamaster's third factory in Penang since its inception in 1991.
"With a RM120 million investment, this 500,000 sq ft facility will bring our total built-up area to 750,000 sq ft.
"To be supported by 300 new engineers, this expansion is to accommodate our automation solutions for the medical industry, factories and warehouses as well as test farm for wafer burn-in, optical sensors testing and contract manufacturing of equipment," he said.
As for Ng, he said over three years, UWC would be investing RM200 million into this expansion project, complementing its long-term plan to transform into a vertically integrated player.
He said, over the years, UWC had been continuously expanding its facilities and capacities to cater to the strong growth of its customers in the semiconductor and life science industries.
"This expansion ties with our venture into the higher end of the value chain such as front-end semiconductor, autonomous chips tester, 5G tester and V2V tester.
"I am delighted that this project will create 300 engineering positions and 200 technician vacancies for the local talent, further boosting Penang's position as a talent magnet in the northern region," he said.