Ferrotec Group Opens Second Kulim Plant, Creating Over 1,000 High-Value Jobs

ALOR SETAR, Nov 5 (Bernama) -- Ferrotec Group’s newly opened second plant in Kulim is expected to generate more than 1,000 new high-value jobs for skilled Malaysian professionals, including engineers, technicians and production specialists.

Plant 2’s official opening on Oct 28 marked another significant milestone in the group's expansion in Southeast Asia and its continued commitment to Malaysians semiconductor and advanced manufacturing ecosystem, it said.

“Malaysia remains an important part of Ferrotec's Southeast Asian growth strategy, supported by growing semiconductor demand, Malaysia’s established semiconductor ecosystem and the performance of the group’s existing operations in the country,” it said in a statement today.

The expansion adds nearly 1 million square feet of highly automated manufacturing space equipped for over 700 high-precision computer numerical control (CNC) machines, Internet  of Things (IoT) sensors, and autonomous guided vehicles.

The plant’s opening ceremony was officiated by Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor and attended by Ferrotec Corporation president and group chief executive officer He Xian Han and Ferrotec Manufacturing Malaysia managing director Anzhi He.

Ferrotec's first manufacturing facility in Kulim, which involved an initial investment of more than RM900 million, began operations in January 2024.

The company subsequently committed a further RM1 billion to its expansion in Kulim, bringing the cumulative investment in its two plants to about RM1.9 billion.

Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said Ferrotec’s decision to open its second plant in Kulim in less than three years after its first plant began operations reflected the group’s confidence in Malaysia.

“The project brings advanced capabilities in quartz, ceramics and precision metal components into the country and, with more than 1,000 additional high-value jobs, creates valuable opportunities for Malaysian engineers, technicians and local suppliers.

“This is in line with the New Industrial Master Plan 2030 and the National Semiconductor Strategy which aims to move Malaysia further up the semiconductor value chain. MIDA will continue to work closely with Ferrotec as it ramps up Plant 2 and deepens its links with Malaysian companies,” he said.

Meanwhile, Muhammad Sanusi said the state’s ambition is not simply to bring more factories into Kedah but to build a stronger industrial ecosystem where leading global companies.

“Our hope to  grow, local businesses can develop alongside them, and our people can benefit from better employment and career opportunities Ferrotec's continued expansion is an excellent example of the kind of long-term partnership we hope to build,” he said.

He Xian Han said Malaysia has a mature, well-established and dynamic semiconductor ecosystem, while its strong industrial foundation, comprehensive infrastructure and efficient government services provide favourable conditions for foreign investors to establish, operate and expand their manufacturing operations.

Meanwhile, Anzhi He said Malaysia and Kulim have been among the best choices for the group when it first evaluated potential locations in Southeast Asia.

“When we first evaluated locations in Southeast Asia, we looked at many factors and can confidently say that choosing Malaysia and Kulim was one of the best decisions we made,” he said.

-- BERNAMA