German firm picks M’sia to set up first Asean plant

KUALA LUMPUR – Malaysia has been identified as the preferred location by German-based company Leuze electronic GmbH + co.KG to establish its first optical sensor production plant in Southeast Asia.

The Malaysian Investment Development Authority (Mida) said Leuze officially announced the opening of its new manufacturing plant in Melaka last month, adding that the plant is currently under construction.

In a statement today, Mida chief executive officer Datuk Azman Mahmud said the company’s decision to move to Malaysia for its business expansion spoke volumes of its confidence in the country.

He said Mida initiated the first contact with Leuze in December 2018, and has since been engaging with the company’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 in 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.

“New era of electronics is emerging globally, and Mida is at the forefront as Leuze will bring in frontier sensor products and new technology into the country.”

Azman said the government will ensure Malaysia remains as a preferred investment location with a favourable environment for quality investments, adding that Mida is in the vanguard to entice more investments in the areas of technology and innovation to position Malaysia as a manufacturing powerhouse of Asia.

According to Leuze’s global projects operations director and project manager, Sebastian Raible, Melaka was selected for its excellent talent pool in the region, well-established universities and thriving electronics industry.

“The new production site will operate as Leuze Electronic Malaysia Sdn Bhd, the group’s wholly-owned subsidiary, and will primarily produce sensors for the lucrative market in Asia.

“The plant is being constructed on a site spanning over 17,000 sq m, and the first building stage of the plant is estimated to be completed by the first quarter of next year.

“With a total usable floor space of just below 7,000 sq m in the first expansion phase, the plant targets a demand of 150 to 200 qualified employees.” – Bernama, February 22, 2021