London-listed Weir Group To Invest RM354mil In Malaysia

Cochrane (left) greeting Najib. With them is Cameron

PETALING JAYA: London-listed Weir Group Plc, a British engineering solutions firm, will invest about £70mil (RM354mil) over the next three years to build an additional foundry, machine shop and a second Linatex continuous rubber processing plant in Sendayan Techvalley, Negri Sembilan.

The investment would also more than double Weir’s workforce to over 1,000 following the creation of about 600 jobs.

The company, which acquired Malaysia-based Linatex group in 2010 for US$200mil (RM620mil), said in a statement that the new investment was part of its strategy to increase capacity in the fast-growing Asia-Pacific region.

“The foundry and machine shop will expand the production of high quality castings sourced at best cost, while the rubber line will increase Weir’s ability to supply the growing demand for Linatex products,” it said.

The announcement was made following a meeting between the UK Prime Minister David Cameron, Malaysian Prime Minister Datuk Seri Najib Tun Razak and Weir Group chief executive Keith Cochrane.

Linatex is a 95% natural rubber product used in the mining industry which, according to the company, has outstanding resilience, strength and resistance to cutting, tearing and abrasion.

The second Linatex continuous rubber processing plant was being set up on a purpose-built facility, said Weir.

“The new facility will be built on a 55-acre site, with the new foundry capable of producing 6,000 tonnes and expanding capacity up to 12,000 tonnes.”

Cochrane said the new investment represented “an important step in the development of our global supply chain capability and builds on the success of our 2010 acquisition of Malaysia-based Linatex.

“Since then, production has more than doubled. This investment, which is the largest made by a UK company in the last five years, builds on that success.

“This expansion demonstrates our confidence in Malaysia as a long-term source of high quality products for our customers around the world,” it said.

Source: Business News, The Star Online

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