New RM180m fully-automated Lights-Out Smart Factory 4.0 in Penang to commence in 2024

ELECTRONIC manufacturing services (EMS) provider EG Industries Bhd anticipates its RM180 million Smart Factory 4.0 in Batu Kawan, Penang to potentially create more than 1,000 high-value jobs for the local community upon its commencement in 2024.

EG Industries’ first fully-automated Lights-Out Smart Factory 4.0 will be situated on a six-acre (2.43ha) industrial land in Batu Kawan by a wholly owned subsidiary, SMT Technologies Sdn Bhd, with a built-up area of more than 22,500 sq m 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.

Upon completion 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 sq m to 80,000 sq m.

At the official groundbreaking ceremony today, EG Industries group CEO Datuk Alex Kang said the group’s upcoming new facility had recently attracted the attention of a few notable local and foreign customers.

He said that among them is US-based Cambridge Industries Group (CIG) for the production of advanced high-speed optical signal transmitters and receivers for 5G wireless networks (optical modules) using photonics and semiconductor technologies for global customers.

He said this would be CIG’s first-ever pioneer technology transfer to South-East Asia.

The groundbreaking ceremony for Smart Factory 4.0 was officiated by Penang Deputy Chief Minister I Datuk Ahmad Zakiyuddin Abdul Rahman.

Penang is the most important manufacturing base for electrical and electronic (E&E) products within Malaysia, and is among the most vibrant hubs globally, accounting for more than 5% of global semiconductor sales.

“We welcome SMT Technologies to be part of Penang’s robust industrial ecosystem and I look forward to a long-standing relationship with SMT in the years to come,” Ahmad Zakiyuddin said.

In 2021, Penang secured an all-time high of RM76.2 billion in total approved manufacturing investments. Penang is also among the top contributors to the country from January to June 2022, with RM7.9 billion in approved manufacturing investments, of which, 38% was contributed by domestic direct investments.

On the trade front, Penang topped the nation’s list in 2021 with an all-time high export value of RM354 billion. Among which, E&E products and medical devices made up about 80% of the state’s total exports. 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, Penang recorded a trade surplus of RM92 billion, representing 49% of the country’s total. — TMR / graphic by TMR