KUALA LUMPUR: Leuze electronic GmbH + Co KG, one of the world class optical sensor producers, has picked Malaysia for its first production plant in Southeast Asia.
Leuze made the official announcement of the new manufacturing plant's opening in Malaysia during a virtual press conference in Januar while presenting its 2020 performance and outlook for 2021.
The plant, to be located in Melaka, is currently under rapid construction phase, Leuze said in a statement today.
Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Azman Mahmud said the decision spoke volumes of the confidence Leuze had in Malaysia.
Since then, the government through MIDA has been engaging with Leuze's team to facilitate the project's provisions, especially in obtaining the necessary licence approval.
"Malaysia has a mature and diverse ecosystem for the rapid development of sensor applications in the electronics industry.
"The milestone of Leuze's activities in Malaysia is definitely in line with the government's aspirations to transform Malaysia into a high technology and knowledge-based economy," he said.
Leuze, known as the specialists in the optical sensors, will be establishing its first production facility in the Asean region and second in Asia after the opening of its factory in Shenzhen, China in 2006.
Leuze global projects operations and project manager of the group's construction project in Malaysia Sebastian Raible said the Melaka plant would primarily produce sensors for the lucrative market in Asia.
He said the new production site would operate as Leuze Electronic Malaysia Sdn Bhd and would be a 100 per cent subsidiary of Leuze Electronic GmbH + Co. KG, Germany.
The plant is being constructed on a site area spanning over 17,000 sq m and the first building stage of the plant is estimated to be completed by the first quarter of 2022.
He said besides some minor impacts in the construction works due to the Movement Control Order (MCO), the project had run as planned and the pilings as well as the groundwork were in process at the moment.
"With the great support of the local authorities in Melaka, Leuze expects no further impacts on the construction project.
""One reason for selecting Melaka for the new Leuze production site was because of the excellent talent pool in the region.
"The well-established universities in Melaka as well as the thriving electronic industry played an important role in the site selection process," he said.