ASEAN KEY DESTINATIONS
Japan-Malaysia venture to manufacture aero parts
Imai Aero-Equipment Mfg.Ltd. (IAC), Japan's largest subcontractor in manufacturing of aircraft components and equipments today entered into a joint venture with Malaysian company Cubic Electronics Sdn Bhd (CESB) to set up their RM100 million aero manufacturing plant in Melaka, Malaysia.
Malaysia state news agency reported that IAC Japan will hold 75 percent equity in the joint venture, IAC Manufacturing (M) Sdn Bhd (IAC) Malaysia, while CESB will own the remaining 25 percent.
"IAC Malaysia aims to be the largest aircraft components manufacturing and sub-assembly hub in Asia Pacific," said President of IAC Japan, Tetsuo Imai, during the signing ceremony Friday at the IAC plant here in Ayer Keroh in southern state of Melaka.
At the signing today, IAC Japan was represented by Imai while CESB by its Chairman and CEO Goh Seng Chong. Melaka Chief Minister Mohd Ali Rustam witnessed the signing.
Imai said IAC was established in the country in 2005 with their manufacturing operations in Nilai in southern state of Negeri Sembilan.
It is currently relocating to Melaka and is scheduled to begin its operations end of April this year, he said.
"We are looking forward to working closely with other supporting industries like CTRM, SMEA, ACM, Spirit Aerospace and many others to achieve our goal," he said.
Meanwhile, Goh said his company was pleased to have IAC as a partner and that having IAC's extensive business capability and experience reflected its plans to grow the local aerospace industry.
CESB is a leading integrated manufacturing services provider in Integrated Manufacturing Operations serving three main market segments namely electronics, communication and technology - for Original Equipment Manufacturer (OEM) and Original Design Manufacture (ODM) customers.
Mohd Ali in his speech expressed hope that the establishment of the manufacturing facility here would attract other associate companies in the aerospace industry to Melaka.
"This will give a boost to Melaka as a prominent hub to offer an integrated array of specialised services for the aerospace industry," he said.