QES (0196) QES GROUP BHD in JV with US-based Applied Engineering to set up plant in Penang
KUALA LUMPUR: QES Bhd is teaming up with US-based Applied Engineering (AE) to provide high-tech electromechanical contract manufacturing services in Batu Kawan Industrial Park, Penang.
Both parties had signed an agreement to set up the JV company, Applied Engineering Technology (M) Sdn Bhd (AET) to provide the services which range from prototyping to high volume production, according to a joint statement on Thursday.
The JV will cater to the specific needs of clients in the semiconductor equipment manufacturing, life science and medical devices, defence, and aerospace market segments, not only in Malaysia, but also to Asean countries and China.
The proposed initial investment for AET is about RM5mil with an initial workforce of 20 workers, comprising mainly engineers and technicians. The investment is set to expand up to RM20mil over the next three years.
AET looks to kick-start its operations in a temporary premise before moving to its new factory in Batu Kawan Industrial Park during the fourth quarter of 2022.
Malaysian Investment Development Authority (MIDA) CEO Arham Abdul Rahman said the electrical and electronics (E&E) and related services industries continue to assume a critical role in Malaysia’s industrial development.
He said they are part of the critical global supply chain and ecosystem to support other high technology industries.
“MIDA is optimistic that AE’s presence here will further boost the development of our high technology equipment ecosystem, enable more opportunities for our local vendors and spur high-employment for Malaysians,” he said.
AE president Jack Yao said MIDA had been crucial in enabling both companies to come together to set up the JV.
“Malaysia will provide the launching pad to AE’s strategical move to expand outside USA to service its major customers in Malaysia and the Asia Pacific.
AE will bring its latest generation of high-end technologies to Malaysia and builds up a whole new technology sector. A significant number of R&D activities are also planned for this new location. Malaysia can benefit its position as a technology-country and can strengthen the region as a high-tech manufacturing hub in Asia Pacific.”
QES Group president Chew Ne Weng said being a JV partner, it will play its role to support this high technology equipment manufacturing project using its established networks across Asean, China and other parts of Asia for AET to expand from Malaysia.
“QES hopes to leverage the well-established and technical strength of AE to further improve our manufacturing capabilities. Together with MIDA, QES anticipates AET will create a sustainable high technology equipment manufacturing eco-system within E&E and medical segments for Malaysia,” said Chew.
https://www.thestar.com.my/business/business-news/2021/07/15/qes-in-jv-with-us-based-applied-engineering-to-set-up-plant-in-penang
