KUALA LUMPUR (Feb 22, 2012): Five companies from the US, Germany, Italy, India and Malaysia are investing a total of about RM2.5 billion in their expansion drive in Malaysia, citing proximity to clients, opportunities in the region and good infrastructure.
The companies are Indian Green Grid Group (IG3) Infra Ltd, Flexsys Chemicals (M) Sdn Bhd, Galperti Group, Infineon Technologies and Sahz Holdings Sdn Bhd.
The biggest investment is from IG3, which is investing US$620 million (RM1.87 billion) to set up a disaster recovery data centre in Cyberjaya.
Its CEO S. Thiagarajan said it will begin with the US$310 million first phase this year and hopes to begin operations early next year.
“Asean has underestimated itself. Digital penetration in Asean is now low, but it is picking up. Asean will adapt to the global pace, which is growing very fast. We see that trend as digital data doubles every six months in Asean,” he said.
Flexsys Chemicals, a subsidiary of US-based Solutia Inc, is investing RM450 million to expand its soluble sulphur plant and set up a polyvinyl butyric (PVB) resin production facility in Kuantan this year.
Solutia Singapore Pte Ltd president of Asia Pacific Robert S. Chu said the expansion in Kuantan is aimed at ramping up capacity to support its businesses worldwide and expects to see solid and healthy growth in Malaysia.
Sahz Holdings, a local small and medium enterprise (SME) producing super capacitors, is spending RM100 million on a production plant in Nilai this year.
CEO Ahmad Husni Ahmad Zainal Abidin said the technology, which initially came from Britain, was brought to Malaysia as materials and labour are cheaper here.
As for Italy-based Galperti Group, the maker of components for the oil and gas industry, it began investing about €13 million (RM52 million) on land, buildings, machinery and equipment in Johor last year.
“We are now expanding our manufacturing facilities. We have five in Italy, one in Houston (USA), one in Dubai and now we’re entering Johor,” said Galperti Manufacturing Malaysia Sdn Bhd managing director Nicola Boletta.
He said the construction of the 7,500 sq m building in Johor began in February last year and will begin operations in April to produce machines of up to 3,000 tonnes.
“It is (to cater) for Malaysia, Southeast Asia and from China to India, as well as New Zealand and Australia (markets),” he said.
He added that it wants to expand in Malaysia due to the opportunities in Asia as well as the outstanding infrastructure in Malaysia.
Infineon Technologies, a chip supplier to the automotive industry and provider of semiconductor solutions, has invested over RM6 billion over the last four decades that it has been in Malaysia. The company is planning to further expand its facilities.
Last year, it invested RM480 million expanding its Malacca operations, in preparation for the market when it fully recovers. It also has a wafer fabrication plant in Kulim.