SEBERANG PERAI, December 1 – Electronic Manufacturing Services (EMS) provider EG Industries Berhad anticipates for its RM180 million Smart Factory 4.0 in Batu Kawan, Penang to potentially create more than 1,000 high-value jobs for the local community upon its commencement in 2024. EG Industries’ first fully-automated Lights-Out Smart Factory 4.0 will be situated on six-acre industrial land in Batu Kawan by wholly-owned subsidiary SMT Technologies Sdn Bhd, with a built-up area of more than 22,500 sq m for production floor area, office building and warehousing capacity.
The Lights-Out methodology creates a completely networked environment that digitises material flow for autonomous manufacturing, controlled by a remote team of highly-specialised experts to manage data, production planning and quality. Upon targeted completion of the Batu Kawan facility in 2024, EG Industries’ total built-up area of its production, warehousing and offices, including its facilities in Sg Petani, Kedah, would increase by 45% from 55,000 sq m to 80,000 sq m.
Speaking at the official groundbreaking ceremony of the Penang Smart Factory 4.0 today, EG Industries’ Group Chief Executive Officer Dato’ Alex Kang said that the Group’s upcoming new facility had recently attracted the attention of a few notable local and foreign customers. Among them are US-based Cambridge Industries Group (“CIG”) to produce Advanced High Speed Optical Signal Transmitter and Receiver for 5G wireless network (“Optical Modules”) using the photonics and semiconductor technologies for their global customers.
This would be CIG’s first-ever pioneer technology transfer to South East Asia. At EG Industries, progressing forward is our mantra. Today, we have demonstrated how a Malaysia-based EMS player has not only made its way into the top 50 EMS players in the world, but is also continually attracting new, high-value accelerators of next-generation technologies to positively impact global advancement. Our upcoming Batu Kawan Smart Factory 4.0 is testament of our consistent progression.
With state-of-the-art technologies, this is not poised to be an ordinary facility, but a highly advanced fully-automated smart factory that will generate tremendous benefits for our customers, stakeholders and country.This milestone has been years in the making. Even before COVID, we began to place the building blocks in our smart technology roadmap, taking the holistic approach of preparing machinery, facilities and mindsets to ride the next technology wave.
Our Batu Kawan factory is an important piece of the puzzle and we are pleased to undertake this endeavour to accelerate our growth. The groundbreaking ceremony for the Smart Factory 4.0 was officiated today by Deputy Chief Minister of Penang YB Dato Ir. Hj Ahmad Zakiyuddin bin Abd Rahman, together with EG Industries’ Group Chief Executive Officer Dato’ Alex Kang.
YB Dato Ir. Hj Ahmad Zakiyuddin bin Abd Rahman, Deputy Chief Minister of Penang said:
“Penang has been making significant progress in its industrialisation journey for the past decades. Celebrating the 50th anniversary of Penang’s industrialisation this year, I am particularly proud to see a new wave of strategic investments, anchoring the State’s position as a preferred investment destination.
Penang is the most important manufacturing base for electrical and electronic (E&E) products within Malaysia, and is among the most vibrant hubs globally, accounting for more than 5% of global semiconductor sales.
The entrance of SMT Technologies is an acknowledgement of the robust industry clusters in Penang. With the strong presence of multinational corporations, large local companies and ancillary industries in close proximity to one another, companies that set foot in Penang are able to enjoy far-reaching benefits in terms of operational and cost advantage. We welcome SMT Technologies to be part of Penang’s robust industrial ecosystem and I look forward to a long-standing relationship with SMTT in the years to come.”
In 2021, Penang demonstrated its stellar performance by securing an all-time high of RM76.2 billion in total approved manufacturing investments. Penang is also among the top contributors to the country from January to June 2022, with RM7.9 billion in approved manufacturing investments, of which, 38% was contributed by domestic direct investments (DDI).
On the trade front, Penang topped the nation’s list in 2021 with an all-time high export value of RM354 billion. Among which, E&E products and medical devices made up about 80% of the state’s total exports. In January to September 2022, Penang’s export value climbed 32% year-on-year to RM337 billion, representing 29% of the country’s total. In the same period, Penang recorded a trade surplus of RM92 billion, representing 49% of the country’s total.
