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BUSINESS

Scandinavian IBS RM500 mln Penang expansion over 5 years

29/09/2022 09:55 PM

KUALA LUMPUR, Sept 29 (Bernama) -- Sweden-based industrialised building system (IBS), Scandinavian IBS Sdn Bhd (SIBS) has undertaken an additional 6.07-hectare expansion at its new plant in Penang Science Park in Simpang Ampat with investments worth RM500 million over the next five years.

A joint statement between the Malaysian Investment Development Authority (MIDA) and SIBS said the expansion will raise production, driven by the huge demand for IBS, a modern construction method involving the making of pre-fabricated materials off-site to be assembled on-site.

MIDA chief executive officer Datuk Wira Arham Abdul Rahman said that SIBS’ continued expansion demonstrates Malaysia’s strong economic fundamentals and vibrant innovation ecosystem, particularly in the IBS industry.

“The company’s presence will also encourage the growth of local companies within the industry.

“MIDA will remain committed to grow the industry with our strategic investors, such as SIBS. This is a key win for Malaysia to realise our aspiration to attract high-quality investments from reputable companies around the world,” he said. 

Meanwhile, SIBS chief executive officer Erik Thomaeus said SIBS has put Malaysia on the map as the leading destination for construction-related manufacturing.

This proves the genuine attractiveness of Malaysia as a hub for business and innovation, he said.

“Our expansion in Malaysia will be divided into phases and eventually will achieve approximately RM500 million in total investment,” Thomaeus said.

The new factory will be about twice the size of the current one with four times the capacity and will be operational in the third quarter of 2022.

The project is expected to provide an additional 1,200 jobs to the local community and the opportunity to offer more product categories to more markets.

"The expansion project is also expected to create an additional value of RM552 million (US$120 million) in local sourcing of raw materials and components.

Penang State Executive Councillor for trade, industry and entrepreneur development Datuk Abdul Halim Hussain, Swedish ambassador to Malaysia Dr Joachim Bergstrom and MIDA executive director manufacturing development (non-resource) Najihah Abas attended the event.

-- BERNAMA

 

 

 


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