Howco Group invests US$20 mln for manufacturing facility at Iskandar M'sia

Howco Group invests US$20 mln for manufacturing facility at Iskandar M'sia
Business & Markets 2013
Written by Bernama
Thursday, 19 September 2013 15:40

JOHOR BAHARU (Sept 19): Howco Group, a leading global distributor of equipment to the oil and gas industry, will expand into the Southeast Asian market with a new manufacturing facility in Iskandar Malaysia.

The new US$20 million facility with 80,000 sq ft of manufacturing space will be built within the Setia Business Park, an industrial park being developed by SP SETIA BHD [], said Howco's chief executive officer, John Ferguson.

"We believe this will be a 'one of a kind facility' and one of the most advanced in this part of the world. Howco Malaysia will become an important part of the Howco Global Supply Chain serving our OEM customers into this dynamic region," he told reporters here today.

The manufacturing facility will open in 2015 and employ over 30 local staff, he added.

Earlier, Ferguson and SP Setia Bhd Group Chief Operating Officer Datuk Voon Tin Yow signed the sale and purchase agreement for the purchase of one unit of a 4.7 acre detached factory at the SP Setia Convention Center, here.

Also present at the ceremony was Malaysian Investment Development Authority (MIDA) Director for Singapore, K.Sukomaran.

According to Ferguson, the factory will be custom-designed to Howco's requirements and offer a quick turnaround time as well as lean, cost effective flow and increased space to hold high value materials.

Howco Malaysia will be part of Malaysia's supply chain in the oil and gas industry with the plan to serve the domestic market, Singapore, South East Asia, the Asia Pacific, the Middle East and beyond, he said.

On whether Howco plans to close its Singapore's plant once the Johor facility is completed, Ferguson said, the company would operate both to cater to the fast growing regional market.

Founded in 1982, Howco has facilities in the United States, Canada, the United Kingdom, Norway, Singapore, China and Dubai (United Arab Emirates).

Meanwhile Voon said, the RM600 million business park encompassing 258 acres has an 80 per cent occupancy and expects the remaining 20 per cent acreage to be filled by year-end.

SP Setia he said, had started building the Setia Business Park 11.

The Setia Business Park is home to many multinational corporations (MNCs) such as Galperti (Italy), Teledyne (USA), Kelpac (Germany) and Singapore public listed companies, Old Chang Kee and New Century Aerospace, he added.

With the cost of operating a business in Singapore spiralling upwards, Voon expects more Singaporean and other MNCs based in the republic to relocate to Johor.

He said, SP Setia was constantly on the lookout for more land especially in the Iskandar Malaysia region for residential and industrial park development.