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Flextronics to build industrial park in Shah Alam

Johannesburg, 26 Aug 2005

Flextronics will soon be advertising for another 200 jobs in its Shah Alam plant in line with the building of its first South-East Asian industrial park, which will be based here.

Flextronics, a leading electronics manufacturing services (EMS) with a global presence in 32 countries on five continents, is one of the world`s largest manufacturers of mobile phones, printers, high-end 3G phones and other hi-tech wireless devices.

Its customers include Sony Ericsson, Xerox, HP, XM Radio, 2Wire and Motorola.

In Malaysia, the company employs more than 25 000 workers in its plants in Shah Alam, Penang, Malacca and Johor. It services leading multinational companies involved in communications, printing and digital imaging, computing and automotive industries.

Flextronics helps customers to design, build, ship and service electronics products.

Last year, the company manufactured more than 16 million mobile phones in Malaysia.

Flextronics Malaysia and India vice-president and general manager, C Vijayan, said Malaysia is an asset to the multinational company, headquartered in Singapore.

"Cost is not the sole consideration in choosing locations in Malaysia. This country is an excellent alternative to China because manufacturing has always been a strong sector for Malaysia in terms of productivity, technical expertise, mature supply chain base, government incentives and infrastructure," Vijayan said.

"For this reason, Flextronics is building its first industrial park in South-East Asia in Malaysia. We are confident of the political stability and committed workforce here."

Supporting Flextronics and its customers on a global scale is the Asian head office industrialisation group (a new business unit), which is in Shah Alam, he said.

And Malaysia hosts the company`s second largest operations in Asia next to China, he added.

Overall, Malaysia has a cost-competitive structure; it is a highly industrialised and stable economy and is a good supply base, said Vijayan.

Flextronics facilities in Malaysia performed significantly well, contributing 16% of the company`s global revenue and will continue to play a major role in sustaining its momentum in the future, he said. "Malaysia is an important stronghold for Flextronics in Asia and we are committed to Malaysia`s economic growth - through continuous investment in new technology and further development of local technical expertise," Vijayan said.

Last month, Flextronics announced the signing of an agreement with the fast emerging Port of Tanjung Pelepas (PTP) to build a vertically integrated industrial campus in the Pelepas Free Zone.

The 1.2 million sq ft facility will bring together several of Flextronics` current operations in South Malaysia.

In addition, Flextronics will continue its existing operations in other parts of Malaysia.

The campus will develop into a fully integrated state-of-the-art manufacturing centre combining in a single location the engineering, printed circuit board assembly, plastics injection moulding and logistic operations.

"Flextronics` investment marks another milestone in the development of PTP and Johor`s south-western corridor in entirety. We are confident that Flextronics` move will incite more investors to take advantage of the unique opportunities offered by the Pelepas Free Zone," said PTP Chief Executive Officer, Datuk Mohd Sidik Shaik Osman.

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