EG Industries’ smart factory in Penang to be ready in 2024, create 1,000 high-value jobs
Electronic manufacturing services provider EG Industries Bhd expects its RM180 million Smart Factory 4.0 in Penang to potentially create more than 1,000 high-value jobs for the local community upon its commencement in 2024.
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% from 55,000 sqm to 80,000 sqm.
EG Industries’ first fully automated LightsOut Smart Factory 4.0 will be situated on sixacre industrial land by its wholly owned subsidiary SMT Technologies Sdn Bhd, with a built-up area of more than 22,500 sqm for production floor area, office building and warehousing capacity.
The Lights-Out methodology creates a completely networked environment that digitises material flow for autonomous manufacturing, controlled by a remote team of highly-specialised experts to manage data, production planning and quality.
Group CEO and executive director Datuk Alex Kang said the group’s upcoming new facility attracted the attention of a few notable local and foreign customers, namely USbased Cambridge Industries Group (CIG) to produce advanced high speed optical signal transmitter and receiver for 5G wireless network using the 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.
“Even before Covid, we began to place the building blocks in our smart technology roadmap, taking the holistic approach of preparing machinery, facilities and mindsets to ride the next technology wave. Our Batu Kawan factory is an important piece of the puzzle and we undertake this endeavour to accelerate our growth,” he said in a statement yesterday.
Meanwhile, Penang Deputy Chief Minister Datuk Ahmad Zakiyuddin Abd Rahman said the entrance of SMT Technologies is an acknowledgement of the robust industry clusters in Penang.
“With the strong presence of multinational corporations, large local companies and ancillary industries in close proximity to one another, companies that set foot in Penang are able to enjoy far-reaching benefits in terms of operational and cost advantage.”
He added that the state is the most important manufacturing base for electrical and electronic products within Malaysia, and is among the most vibrant hubs globally, accounting for more than 5% of global semiconductor sales.
In January to September 2022, Penang’s export value climbed 32% year-on-year to RM337 billion, representing 29% of the country’s total. In the same period, the state recorded a trade surplus of RM92 billion, representing 49% of the country’s total.