Good afternoon, everyone. I am pleased to be here today for the official exchange of documents ceremony between OSRAM and PDC. The Penang state government has approved for PDC to build and lease a RM 15.5 million additional 3-storey flatted factory building to OSRAM. The additional building will take up 54,252 square feet of build up area.
The OSRAM site in Penang has been present in Penang since 1972 and throughout that time has manufactured optoelectronics devices for a wide variety of applications continuously for 43 years.
The new facility will house OSRAM’s office and laboratory that focuses on Innovation, Design and Realization of lighting technologies, placing Malaysia team at the forefront of creativity in this field. This expansion is seen not only as another important new milestone achieved by OSRAM, it is also a strategic investment for the Penang state. The expansion will focus on high-skilled business and technology roles which in turn creates a high value employment for Penang talents
This investment is expected a total headcount in Solid State Lighting and R&D to increase from 350 today to 600-700 in 2020. Penang will also benefit from OSRAM’s expanding local supplier base through the introduction of new manufacturing technologies.
Penang recorded RM 8.2 billion in investments in 2014, a 110% increase compared to RM 3.9 billion in 2013. For the 7 years period between 2008-2014, Penang recorded an investment of RM 48.2 billion, a 93% increase compared to the previous 7 years period 2001 to 2007 of RM 24.9 billion.
The State Government is highly supportive of this expansion plan, as evidenced from the growth of OSRAM Penang as a high-technology facility. We look forward to benefit from the creation of skilled-employment as well as to spur the growth of local supply chain.
The State Government thru our principal investment agency, investPenang and PDC, has proactively worked together with OSRAM to facilitate the expansion plan.
OSRAM has chosen Penang to expand its operations over a variety of reasons, among which is the availability of highly-skilled talent and the world class supply chain. As a robust industrial state, Penang also offers competitive cost of doing business, wide range of incentives and strong intellectual property protection.
With all the state government proactive efforts to prosper Penang’s investment ground, we hope that OSRAM will continue to grow successfully in the coming years, and remain a valuable investment to Penang as well as to the country.
Thank you.