LEM, a specialist in electrical measurement technology, has officially opened its new US$17 million state-of-the-art factory in Penang.
This cutting-edge facility seemingly merges advanced manufacturing technology with eco-friendly designs.
It is located at the Penang Science Park North in Simpang Ampat.
LEM chief executive officer Frank Rehfeld said the new facility is the company’s first manufacturing plant in Malaysia.
“It is vital that the company continues to invest in state-of-the-art facilities where it can manufacture world-leading products for a range of rapidly developing markets.
“Thus, LEM chose to make such a substantial investment in Penang in recognition of the region’s expertise in semiconductor production.
“Setting up this new factory also reflects LEM’s growth plan which is driven by increasing global demand for the company’s core products, current and voltage sensors.
“The need for decarbonisation in mobility, industry, energy production, as well as our private lives has led to an increased need for our products across all sectors where LEM’s products are used, including automation, automotive, traction, and renewable energy,” Rehfeld said in his speech during the groundbreaking ceremony at the Penang Science Park North in Simpang Ampat today.
Also present were Chief Minister Chow Kon Yeow, Swiss Ambassador to Malaysia Andrea Reichlin, Penang Trade, Entrepreneurial Development and Rural Development Committee chairman Rashidi Zinol, Bukit Tambun assemblyman Goh Choon Aik, InvestPenang chief executive officer Datuk Loo Lee Lian, Penang Mida (Malaysian Investment Development Authority) director Muhammad Ghaddaffi Sardar Mohamed, LEM Board of Directors chairman Andreas Hürlimann and LEM Malaysia Sdn Bhd general manager Gregorie Lafore.
According to Rehfeld, the new 12,000sq m plant is expected to generate 500 jobs in the next few years.
“We expect to increase the headcount to more than 200 people by March 2025 and eventually more than 500, with sales from the factory expected to reach over €200 million.
“We are very optimistic that having a state-of-the-art facility in this region with the ability to test our own semiconductors will be a major boost for our integrated current sensing business.
“With plans in place already for an extension on the additional 5,000sq m of land, the new factory features a state-of-the-art logistic system including automatic guided vehicles (AGVs) on the shopfloor which transport components from the warehouse to the high-tech production lines,” he said.
Meanwhile, Chow, who graced the ceremony, was delighted to welcome LEM to Penang.
“We are delighted that such an internationally renowned company as LEM, with a reputation for dedication to quality, has chosen to invest not just in the region, which is renowned for its supply chain resilience and a well-developed ecosystem, but also in the acknowledged expertise of our people.
“LEM, since its establishment in 1972 in Geneva, Switzerland, has earned a distinguished reputation as a global leader in providing innovative solutions for measuring electrical parameters.
“Their focus on current and voltage transducers has served various industries, spanning from drives and welding to renewable energies and power supplies, and from traction to high precision, conventional, and green cars businesses,” said Chow.
Chow added that LEM’s new facility marks another stride forward in its growth trajectory and represents a substantial investment in the region.
“This greenfield project is dedicated to manufacturing and testing current sensors, addressing global markets such as automotive, renewable energies, robotics, industrial, and instrumentation sectors.
“Moreover, Penang, renowned for its well-developed industrial ecosystem, boasts the capacities and capabilities to support the needs of industrial players in next-generation technologies and growth strategies.
“Thus, I am optimistic that LEM will reap significant benefits from its operations in Penang, often referred to as the Silicon Valley of the East,” he said.
Chow also expressed his confidence that LEM’s presence in Penang will not only contribute significantly to the state economy but also stimulate innovation, promote knowledge transfer, and elevate the skills of the state’s workforce.
He said the partnership between LEM and the Penang government exemplifies its shared commitment to sustainable development, technological advancement, and economic resilience.
Story by Riadz Akmal
Pix by Adleena Rahayu Ahmad Radzi
Video by Muhamad Amir Irsyad Omar