Pulau Pinang, 9 March 2022 – Applied Engineering Technology (M) Sdn. Bhd. (AETM) organised a grand opening ceremony for its manufacturing plant in Batu Kawan Industrial Park, Pulau Pinang today. The ceremony was officiated by Deputy Chief Minister 1 of Penang, YB. Dato’ Ir. Haji Ahmad Zakiyuddin bin Abdul Rahman and attended by Government officials including Madam Lim Bee Vian, Deputy CEO of Malaysian Investment Development Authority (MIDA) (Investment Development) and Dato’ Loo Lee Lian, CEO of InvestPenang.
Established in May 2021, AETM is a joint venture company between US-based Applied Engineering (AE) and its Malaysian counterpart, QES Manufacturing Sdn. Bhd. (QES). Together, they will provide high-tech electromechanical contract manufacturing services, from prototyping to high volume production. Notably, AETM is AE’s first offshore operation outside of the United States.
Congratulating AETM, Dato’ Ahmad Zakiyuddin Abdul Rahman, Deputy Chief Minister 1 of Penang said “Penang’s dynamic industry cluster allows companies that set foot here to enjoy overarching benefits, which include supply chain resiliency and operational advantage. Importantly, the talent pool is equipped with strong engineering expertise that enables companies here to perform high value-added activities and increase participation in the global value chain.”
“The significance of Penang in the regional and global scale is well attested, Penang accounted for over 5 per cent of the global semiconductor sales and serves as one of the most thriving regional hubs for equipment manufacturing, as well as medical technology industries. Leveraging Penang state as a springboard, I am confident that Applied Engineering Technology could seize tremendous opportunities arising from the technology advancement and global megatrends.
”Meanwhile, Madam Lim Bee Vian, Deputy CEO (Investment Development), MIDA stated, “This grand opening ceremony is a very significant milestone after the joint venture partnership was established in 2021. It is a parallel testament to global investors’ confidence in Malaysia as a preferred investment destination, as well as the capability and readiness of local companies to support high profile business ventures and activities.” She expressed confidence that having Applied Engineering Technology’s (AETM) technology and expertise here in Malaysia will enhance the value of talent and skilled human capital development in the country, which is in line with our National Industry 4.0 aspirations. Local job seekers, particularly those with an engineering background will benefit greatly from the transfer of technology by working hands-on with the experts at AETM.
“Local suppliers would also benefit from increased business, particularly in the areas of automation equipment design. This in turn can assist local suppliers in meeting international standards and integrate themselves into the global value chain.” Madam Lim added.
The Batu Kawan manufacturing plant, which has a factory floor space of approximately 20,000 square feet, is expected to begin servicing customers in April 2022. Currently, AETM has successfully obtained MIDA’s manufacturing license as well as business license from the local authority. AETM has also received a Manufacturing Warehouse Licence (LMW) from the Royal Malaysian Customs Department in February 2022.
Speaking at the event, the President of Applied Engineering Inc. Jack Yao added, “We truly appreciate the partnership with QES. We will work in the best way possible to ensure the success of this joint venture. Batu Kawan is a great place for manufacturing companies, and we are glad to be able to cement a mark in this area. The markets served under this endeavour include semiconductor/display capital equipment, medical technology, industrial automation, aerospace, and emerging technology markets. We are confident that the ASEAN market will benefit from this partnership.”
Meanwhile, the Managing Director and President of QES Group Berhad Chew Ne Weng said, “Today marks a momentous step forward in our joint venture with AETM. We thank the Deputy Chief Minister 1 of Penang for taking time out of his busy schedule to officiate our event. We look forward to kickstarting our joint venture’s manufacturing operation in Batu Kawan, Pulau Pinang.
Aside from our manufacturing facility, we have invested heavily in talent building. From November 2021 to January 2022, we have sent key staff members and technicians to AE San Jose for knowledge transfer, to have an in-depth understanding on the technical know-how. In addition, we intend to station technical experts from AE San Jose in Penang for additional training. For the first two years, our focus is to support our customers in terms of equipment assembly and integration, focusing on semiconductor, medical and other industry segments. Starting from the third year onwards, we plan to develop equipment design capability for our customers, based on their needs.”
The project segments are primarily for electromechanical contract manufacturing services, and AETM is working to meet the specific manufacturing needs of their clients. The company’s focus will be on semiconductor equipment manufacturing medical technology, medical devices, defence, and aerospace not only for the Malaysian market but also for the ASEAN and China markets.