Ferrotec’s new facility in Kulim opens for production

Ferrotec Holdings Corporation, a global supplier of materials, components, and precision system solutions, has opened its manufacturing facility at Kulim Hi-Tech Park, Kedah.

The Tokyo-listed company has invested about RM850 million in the project and created more than 800 job opportunities mostly for local talents, according to a joint statement issued by the Malaysian Investment Development Authority (Mida) and Ferrotec.

Ferrotec Holdings and Ferrotec Manufacturing Malaysia Sdn Bhd vice president Takeru Yamamura said the state-of-the-art production facility has been strategically designed to meet growing demand for its products and services in the dynamic Asian market.

“As Ferrotec’s first manufacturing location in Southeast Asia, the Kedah plant integrates the culmination of 44 years of engineering expertise gathered from our operations in the United States, European Union, China and Japan,” he said in the statement.

Yamamura said the establishment of the Kedah plant would propel Ferrotec to new heights as a globally recognised international supplier in the semiconductor industry.

Ferrotec held its opening ceremony on Monday to kick off production at the plant, which will be undertaking electromechanical assembly and advanced material fabrication for semiconductor equipment.

The ceremony was attended by Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, Mida deputy chief executive officer (investment development) Lim Bee Vian, and Ferrotec Holdings president and group chief executive officer He Xian Han.

Lim commended Ferrotec for its unwavering trust and support in establishing its manufacturing facility in Malaysia.

She said Ferrotec, with its extensive manufacturing footprint, symbolises the diversification of supply chains, reinforcing Malaysia’s strategic standing as a location for semiconductor operations.

“By choosing Malaysia, Ferrotec positions itself to leverage untapped opportunities, foster innovation and contribute substantially to the ever-evolving semiconductor landscape in our region,” she said.

Lim said Mida will continue to partner with leading companies to anchor high value-added manufacturing, adopt advanced manufacturing technologies, and equip its people with the requisite skill sets.

“Our partnership with Ferrotec is a good example of how we are doing this,” she added.

Meanwhile, Muhammad Sanusi said that Kedah is an excellent investment destination, not only known for tourism and agriculture, but also manufacturing.

He said the state offers a strategic location, skilled workforce and a supportive environment for companies to flourish.

“With the E10 initiative set up to ease investors’ journey and a strong track record with multinationals already present here, Kedah is no doubt a preferred state for investment,” he said.