Ferrotec Holdings to construct new manufacturing facility at Kulim Hi-Tech Park

Ferrotec Holdings Corp will begin constructing its new manufacturing facility at Kulim Hi-Tech Park, Kedah.

The plant will undertake electromechanical assembly and advanced material fabrication for semiconductor equipment to meet customer needs while also expanding the company's business globally, it said.

Ferrotec Manufacturing Malaysia Sdn Bhd chief executive officer Eiji Miyanaga said the company had seen an increasing demand for its products and services in Asia.

"With the start of construction on this new production facility in Malaysia, Ferrotec is committed to driving its effort to fulfil the increasing capacity demands.

"We will also improve business continuity that is vital to our customers' success," said Miyanaga after the company's groundbreaking ceremony here today.

Malaysian Investment Development Authority (MIDA) deputy chief executive officer (investment development) Lim Bee Vian said the event is a testament to Ferrotec's reputation as a global leader in the manufacturing and assembly industry for the past 42 years.

Lim said this project does demonstrate not only Ferrotec's confidence in Malaysia's long-term investment propositions but also the thriving state of the manufacturing industry in Malaysia.

"We aim to distinguish ourselves from our competitors based on these intangible factors—competitive business environment and cost advantages, well-developed infrastructure and the availability of technical and management talents," he said.

Lim said that despite facing competition from low-cost production countries, Malaysian machinery and equipment (M&E) companies continue to thrive in producing high-value-added products and integrated services, supporting the needs of the MNCs' in their effort to serve their customers better.

He said MIDA aims to facilitate such companies by promoting continuous investment opportunities to expand their operational capabilities to improve output quality and volume.

"To continue transforming the industry, the government encourages investors to invest in state-of-the-art technologies that can support advanced manufacturing processes across supply chains," he added.