MIDA: Eclipse Automation to set up manufacturing facility in Penang
10 Feb 2022
Eclipse Automation Inc, which has 20 facilities located across Canada, the United States and Central Europe, will be making its first foray into Asia with the setting up of a manufacturing facility in Penang.
Headquartered in Ontario, Canada, the company is a leading supplier of automated manufacturing equipment for the life sciences, energy, transportation, consumer electronics and the industrial sectors, the Malaysian Investment Development Authority (MIDA) said in a statement.
The agency said a groundbreaking ceremony for the new facility, located on 1.21 hectares, was held today at Batu Kawan, Penang. The facility will serve Eclipse Automation’s major customers across Asia Pacific and other regions.
“The factory’s construction is expected to commence in the first quarter of 2022 with commercial operations targeted to begin in 2023,” it said.
MIDA chief executive officer (CEO) Datuk Arham Abdul Rahman said the new facility is expected to create about 150 new jobs by 2025, with about 80 per cent of the employees to be from the technical and engineering background.
The project is described as “timely and significant” as it can contribute to the Malaysian economy in terms of high-income employment amid the Covid-19 pandemic.
It will also further strengthen Malaysia’s position as “a strategic destination for global machinery and equipment (M&E) players that will create a multiplier effect within the domestic economy in terms of local supply chain usage and technology transfer,” Arham said.
The Eclipse Automation Malaysia site will have a production area of 55,000 square feet (sq ft) and an office area of 27,000 sq ft. It will support customer needs within the life sciences sector and other industries within the ambit of the group.
Eclipse Automation CEO Steve Mai said the site in Penang will provide exceptional, value-added manufacturing options to best support global programmes, including replication line and outsourcing model platforms.
“Our Malaysian facility will also employ a large team of highly-qualified engineers, assemblers and other support teams to enhance our ability to provide solutions with a powerful follow-the-sun model of service.
“We appreciate MIDA for supporting us throughout our journey, and Malaysia’s pro-business, pro-trade and business-friendly investment policies have played a key role in helping us make our investment decision,” he said.
Last year, MIDA approved a total of 49 M&E projects with an investment value of RM1.3 billion.
Of the total, 27 were new projects, with investments amounting to RM753.7 million (56.3 per cent). The remaining 22 were expansion or diversification projects worth RM584.4 million (43.7 per cent), MIDA said.
Most of the investments approved were from foreign sources, amounting to RM906.0 million, or 67.7 per cent; while the remaining RM432.2 million (32.3 per cent) were from domestic direct investment.
These approved projects are expected to create 2,253 new job opportunities, the agency said.