Seagate invests RM1 billion on new Penang plant
American multinational firm Seagate will invest RM1.05 billion in Penang, which is set to boost the island’s manufacturing sector, Chief Minister Lim Guan Eng said today.
“The state government is pleased that Seagate are expanding their operations in Penang," he said in a statement today.
Seagate, which manufactures hard disks and provides data storage solutions, would purchase 40 acres of land, with the option to purchase another 30 acres at the Batu Kawan Industrial Park.
"The land purchase is in line with the company's strategic business model to support their long-term operations in Penang."
Lim said Seagate's investment in Penang over a five-year period would serve as an economic stimulus for the growth of the manufacturing sector in the island state.
"It will also endorse Batu Kawan as a preferred global location to invest, work, live, learn and play.
"The manufacturing sector has contributed almost 50% of Penang’s Gross Domestic Product over the past five years.
"The state government will continue to support this sector as it is a necessary condition for the growth of the services sector."
Seagate is a US-based company involved in the data storage industry and manufactures hard drives and storage solutions.
It was incorporated in 1979 with its principal executive office in Cupertino, California, and is listed on Nasdaq stock exchange with over 50,000 employees worldwide.
Penang Seagate, which was founded in 1988, operates a hard-disk manufacturing plant and an information technology (IT) shared resource centre.
Penang has keenly promoted the services sector by launching the RM3.3 billion “Business Process Outsourcing-Information Communication Technology Hub” in March this year.
Penang Development Corp (PDC) signed a memorandum with investment firm Temasek Holdings of Singapore to form a joint-venture company to develop the Penang International Technology Park and Business Process Outsourcing Prime on a 206-acre site in Batu Kawan.
In June this year, Lim announced SanDisk Corp’s investment in a RM1.2bil flash-memory product manufacturing facility in Batu Kawan, south Seberang Prai. – August 9, 2014.
