Selangor to engage industry players for aircraft teardown facility setup

A meeting will enable the state govt to gauge ideas and suggestions from the stakeholders, says MB


THE Selangor state government is expected to meet with aerospace industry players to discuss the possibility of establishing an aircraft teardown facility in Subang, Selangor.

Selangor Mentri Besar (MB) Amirudin Shari (picture) said the meeting would enable the government to gauge ideas and suggestions from the stakeholders before any decision is made for the next course of action.

Findings from the meeting could also be incorporated in a proper proposal that might be included in the state’s Budget 2020 that would be tabled at the end of the year.

“I visited the National Aerospace & Defence Industries Sdn Bhd and SME Aerospace Sdn Bhd recently, and they had made their suggestions over this matter.

“Invest Selangor Bhd and state executive councillor Datuk Teng Chang Khim would discuss it further with stakeholders and the industry players to rejuvenate Subang, especially on the airport side, so that we could create a more competitive environment for the creation of a new economic attraction,” Amirudin told reporters at the Selangor Regional Powerhouse conference in Kuala Lumpur yesterday.

He said his administration is also compiling aerospace industry data before scheduling the next meeting with the Airbus Group.

Last month, it was reported that Selangor was hatching out a plan to set up the first aircraft recycling outlet in the Asean region, which has the potential of securing a giant share in the multibillion end-of-life segment of the aerospace industry.

Amirudin said in the report that the state government, together with Airbus, are exploring the prospects of developing an aircraft dismantling and recycling facility in the state.
The meeting with Airbus was a follow up to Amirudin’s visit to the Paris Air Show last month.

Airbus SE, which partially owns Tarmac Aerosave SAS, is reported to have given its commitment to expand its existence in Malaysia via the teardown business.

Amirudin said the state has received good feedback from industry players on the government’s new direction in the aerospace sector.

“After decades of aerospace establishment here, we will participate in this industry via our subsidiaries, such as Permodalan Negeri Selangor Bhd and Mentri Besar Selangor Inc,” he said.

Meanwhile, Teng said the engagement process is still ongoing and the state has not decided on any definite timeline for the project.

“It is a tedious process. We had already held meetings and planning for more soon,” he said.

Currently, Selangor represents 62% of the total aerospace industry in Malaysia at three industrial parks, namely Sepang, Subang and Serendah.

Some 230 aerospace firms are operating in the country — mainly in the manufacturing as well as the maintenance repair and overhaul sectors.

Earlier, Amirudin said in his keynote address that Selangor has become a hub for a number of industries.

“These include the electrical and electronics sector which has contributed RM35 billion in investments over 30 years; the transportation equipment sector including aerospace-related industries, which has brought in investments worth RM25 billion over three decades; and life sciences, which has generated investments worth RM13 billion,” he said.