The new investment is expected to generate over 1,000 employment opportunities and create outsourcing jobs, particularly for the local small and medium companies involved in precision tooling and metal fabrication businesses.
HP’s plant is in line with its plan to open a new graphics solution centre of excellence and expand its ink manufacturing facility in Singapore, which is scheduled to open in 2015.
Penang’s Chief Minister, Lim Guan Eng said in June that the state could expect another wave of investments from HP and Seagate. According to Lim, other multinational corporations (MNCs) in the state would be increasing their investments.
In August, Lim said the US MNC, Seagate would be investing RM1.05 billion in Penang.
Seagate, which manufactures hard disks and provides data storage solutions, would purchase 40 acres (16.18ha) with the option to purchase another 30 acres (12.14ha) at the Batu Kawan Industrial Park.
HP’s recent split into two companies will have no impact on the decision to set up a manufacturing facility in Batu Kawan. The company recently confirmed its plans to split into two companies – one to focus on personal computer and printer business and the other on enterprise services, which is a faster growing segment.
Adapted from StarBiz, 9 October 2014