(May 15): Global product solutions company, Jabil Circuit Inc, will be investing RM1 billion over the next five years in Penang to set up a new manufacturing plant in Batu Kawan in central Seberang Prai, on the mainland.
The new facility by the US-based firm will manufacture products for the enterprise, industrial, medical and aerospace sectors; and house Jabil's global shared services and innovative engineering teams.
Chief Minister Lim Guan Eng said the manufacturing giant had agreed to buy an 8ha plot of land from state investment arm Penang Development Corporation (PDC) for the expansion.
“The land was sold for RM30 million,” he said in a press conference today at the state legislative assembly building before the agreement between PDC and Jabil was signed.
Lim said the state was highly supportive of the expansion plan, which would also create 2,500 skilled jobs in the state.
"We look forward to benefit from the creation of skilled employment as well as to spur the growth of the local supply chain," he said.
Lim also said the Jabil expansion was timely, following other multinationals like BOSE, Sandisk and Seagate that were also growing their operations in the Batu Kawan Industrial Park.
Jabil Circuit Singapore Pte Ltd operations, electronic manufacturing services senior vice president Ong Kay Chong said the site in Batu Kawan was ideal to set up the company's second hi-tech facility, which would produce items ranging from bio-sensors to network storage.
He said he was confident in the strength of the electric and electronic (E&E) sector to brave through economic uncertainties.
He said the sector was doing very well since Jabil manufactured US$1.5 billion (RM5.38 billion) worth of products every year.
“We are involved in 10 different industries,” he said.
Jabil has two existing plants in Bayan Lepas on Penang island and Sungai Petani in Kedah.
It has nearly 5,200 employees and has invested over US$250 million (RM897 million) in engineering services, equipment and infrastructure. – The Malaysian Insider