SSI Schaefer to boost Malaysian operations
KUALA LUMPUR: SSI Schaefer, one of the world's largest total solutions providers and components manufacturers, will expand its steel manufacturing production facility in Malaysia by almost 30 per cent amid growing demand from Asia Pacific, Middle East and Africa.
"With land and labour costs rising, we are seeing an increase in enquiries for high-rise racking systems, and shipping heavy steel profiles from Europe is obviously not cost-effective.
"In this regard, SSI Schaefer management has agreed that Asia should become a competence centre for the design and supply of these systems," a company spokesperson told Business Times.
While not disclosing the investment amount for the expansion, the spokesperson said the company is adding another 5,000 sq m of space for special steel work fabrication.
"This means that we now have 34,000 sq m of production and warehousing at our Simpang Renggam site in Johor," said the spokesman, adding that in 2011, the company built a 5,000 sq m conveyor production hall to assemble its European range of conveyors locally.
"In 2012, we expanded our warehouse to meet increased exports and now we are adding another 5,000 sq m for special steel work fabrication. We target to complete our latest expansion within this year," the spokesperson said.
With a staff strength of 350 people, the increased production area is expected to increase steel fabrication by about 40 per cent.
Malaysia is the centre of SSI Schaefer's manufacturing for distribution to subsidiaries in Asia Pacific, Middle East and Africa.
» RELATED STORIES