UK's Weir Group to invest STG70m here
WEIR Group Plc, the United Kingdom's biggest supplier of pressure pumps, will invest STG70 million (RM353 million) in new plants in Malaysia as part of its strategy to expand into emerging markets.
The three-year project to build a campus to the south east of Kuala Lumpur will expand Weir's production of high quality castings and Linatex, a resilient natural rubber product used in the mining industry, the company said in a statement after the London market closed yesterday.
"This represents an important step in the development of our global supply chain capability and builds on the success of our 2010 acquisition of Malaysia-based Linatex," Weir chief executive officer Keith Cochrane said. "Since then, production has more than doubled."
Weir is seeking to increase capacity in the Asia-Pacific region to widen its supply chain and offset slow economic growth at home.
The region contributed about 20 per cent of the Glasgow, Scotland-based company's revenue in 2012, compared with about 12 per cent from Europe.
The new campus, which will include a foundry, a machine shop and a second Linatex continuous rubber processing plant, will be built on a 55 acre site and have the capacity to produce 6,000 tonnes. Bloomberg