Samsung SDI Co Ltd aims to make Malaysia its largest international offshore operation outside Korea by 2015, citing good industrial ecosystem as the main contributing factor for the decision.
Its chairman/president Park Sang Jin said political stability, availability of skilled labour force and an economy that focused on high value-added activities that contribute to the stability of business operating costs, makes Malaysia a desirable choice.
“I am satisfied with the performance of Samsung as a leading technology venture where it is always involved in the areas of new and emerging technologies, and the result has been brought to Malaysia,” said Minister of International Trade and Industry Datuk Seri Mustapa Mohamad after his meeting with Park in Kuala Lumpur yesterday.
Samsung SDI is an affiliate of Samsung Electronics, which is the largest makers of flat panels and smartphones. Samsung started in Malaysia in 1979 with an office in Kuala Lumpur providing sales and engineering support. Until now, Samsung has invested about RM5 billion under 15 entities comprising five manufacturing and 10 services, according to a statement from the ministry.
With an annual sales of about RM19 billion, the statement added that the group had contributed about 1.7% of Malaysia’s gross domestic product in 2010.
In addition to providing employment to about 7,500 people, it has also been able to attract 35 Korean companies to invest in the country. Samsung’s investment in the country has also been able to take advantage of more than 400 local companies supporting Samsung in Malaysia.
The company has also set up Samsung SDI Energy Sdn Bhd in Senawang to produce lithium- ion batteries for the tablet PC, mobile phones and power tools, the statement added.
The plant which has a capacity to produce 22 million units is expected to rise to 32 million units by year-end, and when it is in full operation in 2014, the production capacity is expected to be 400 million units, the same statement said.
Apart from manufacturing operations, the company has also set up a training centre to train staff and a research and development centre for an inorganic industry which is to be set up in 2014.