Ferrotec Holdings sets up new manufacturing facility at Kulim Hi-Tech Park

KUALA LUMPUR: Ferrotec Holdings Corporation will be constructing a new manufacturing facility at Kulim Hi-Tech Park, Kedah, with a total investment exceeding RM500 million.

Ferrotec is a global supplier of materials, components, and precision system solutions.

According to a joint statement with the Malaysian Investment Development Authority (MIDA), the plant, which will be undertaking electromechanical assembly and advanced material fabrication for semiconductor equipment, is designed to meet customer needs while expanding the company's business globally.

The plant is expected to kickstart its operation in 2023.

The facility will cover an area of more than 80,000 sq ft, and the project is anticipated to create approximately 250 high-value jobs for Malaysians.

As a Tier 1 company supplying multinational corporations (MNCs) in the semiconductor industry, the company has committed to providing training to Malaysian employees at the factories in Japan and the United States (US).

Senior Minister and Minister of International Trade and Industry (MITI) Datuk Seri Mohamed Azmin Ali said Ferrotec's decision to choose Malaysia for its high-tech manufacturing facility speaks volumes of the country's talent readiness strength, manufacturing capability 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 said.

He added that Ferrotec's investment would open up greater possibilities for other global companies in the industry to follow suit and invest in Malaysia.

"This major investment is poised to realise Malaysia's long-term aspiration of becoming a global manufacturing hub," he added.

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

These projects are expected to generate 2,500 employment opportunities, with about 56 per cent of employees in managerial, technical and engineering-related skills.

The specialised M&E for specific industries sub-sector is the largest investment contributor for 2021, with 16 projects totalling RM592 million approved.

MIDA chief executive officer Datuk Arham Abdul Rahman said it is encouraging to know that Ferrotec, the key supplier to a leading global front-end wafer fabrication equipment manufacturer, has decided to establish a plant in Kulim, Kedah.

"With Malaysia's attractive talent pool, positive investment environment, and diversified supply chain, among others, I am optimistic that Ferrotec will benefit from the spillovers the nation has created and have more to offer to its global customers," he said.