EG Industries’ Batu Kawan “smart” plant expected to offer over 1,000 high-value jobs
09 Nov 2022
EG Industries Bhd expecs its RM180 million Smart Factory 4.0 in Batu Kawan, Penang to create more than 1,000 high-value jobs for the local community upon its start in 2024.
The electronic manufacturing services (EMS) provider said its first fully-automated Lights-Out Smart Factory 4.0 would be situated on 2.43 hectares of industrial land in Batu Kawan, with a built-up area of more than 22,500 square metres for production floor area, office building and warehousing capacity.
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 per cent from 55,000 sq m to 80,000 sq m.
Group chief executive officer Datuk Alex Kang said the upcoming 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 using photonics and semiconductor technologies for their global customers.
This would be CIG’s first-ever pioneer technology transfer to Southeast Asia.
“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. Our Batu Kawan factory is an important piece of the puzzle and we are pleased to undertake this endeavour to accelerate our growth,” he said at the official groundbreaking ceremony in Penang today.
The groundbreaking ceremony for the Smart Factory 4.0 was officiated by Penang deputy chief minister Datuk Ir Ahmad Zakiyuddin Abd Rahman.
“Penang has been making significant progress in its industrialisation journey for the past decades,” Ahmad Zakiyuddin said.
“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.”
He added that Penang was the most important manufacturing base for electrical and electronic (E&E) products within Malaysia, and among the most vibrant hubs globally, accounting for more than five per cent of global semiconductor sales.
In 2021, Penang secured 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 per cent was contributed by domestic direct investments.