KUANTAN: The 'defence city' project in Padang Tengku, Lipis, will have an ammunition factory and an armoured vehicle plant, the state legislative assembly was told today.
Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said two companies have expressed interest in phase two of the Padang Tengku industrial estate, which was earmarked for defence industry projects.
"Ketech Asia Sdn Bhd has invested RM150 million to build the country's first ammunition factory. It will supply ammunition to the armed forces and Home Ministry.
"Construction on a 40ha land that is leased by the Pahang State Development Corporation to the company has achieved 82 per cent progress till March 15. We expect it to be completed by the end of the year.
"The second potential investment is an armoured vehicle plant by Mildef International Sdn Bhd. The company is expected to invest once Ketech Asia's first phase is operational," Wan Rosdy said in answering a question from Datuk Mustapa Long (BN-Padang Tengku).
He also said all defence investments would go to phase two of the industrial estate.
"This will indirectly help to increase salaries and contracts in the service sector. The presence of the industrial estates will result in an increase in population and household expenditure."
Mustapa also said several states wanted to set up the armoured vehicle factory.
Wan Rosdy said the matter had been addressed.
"Once the ammunition factory is operating, it is unlikely the armoured vehicle plant will operate elsewhere... we have already locked it in (secured the deal)," he said.