Phoong (fourth right) and Shin Dong Hwan (fourth left) officiating SK Nexilis KKIP factory’s first copper foil shipment.
KOTA KINABALU (Oct 23): South Korean investor SK Nexilis announced its first shipment of copper foil from its factory here.
State Industrial Development and Entrepreneurship (MIDE) Minister Datuk Phoong Jin Zhe said the inaugural shipment weighing 80 tonnes had an estimated export value of RM1.9 million.
He said the next shipment of copper foil from the factory is expected to be next month with varying weight and export values, which is subject to production capacity.
“This is the catalyst for Sabah to become an industrial and export oriented state. Such a milestone is vital as we want to have high more value factories here to provide more job opportunities for locals in order to further spur Sabah’s progress in becoming a truly developed state,” he said when officiating the first shipment at SK Nexilis Malaysia Plant at Kota Kinabalu Industrial Park (KKIP) here on Monday.
He said in the remaining three months of this year, the factory is expected to be able to produce 1,150 tonnes of copper foil with an estimated export value of RM65 million, and the said figures are derived from only one of the factory’s operating production lines.
“Once all production lines in the factory are fully operational, we are expecting it to have an annual maximum production capacity of 57,000 tonnes in copper foil worth around RM2.8 billion in export value, making it one of the biggest copper foil producing factories in the world.
“My ministry is currently facilitating for SK Nexilis to meet all the requirements to ensure the factory will be running at full capacity and can achieve the set production target. This will be done in phases and we hope it can be realised by next year.
“If we can achieve this, it will bring up the state’s export value and manufacturing figure. We do not expect this to happen overnight but we are very committed to this cause to make Sabah prosper and for Sabahans to earn more,” he said.
Phoong said the SK Nexilis factory had provided 380 job opportunities so far, with 90 percent of the workers Malaysians comprising 58 percent Sabahans while the rest from Peninsular and South Korea, adding SK Nexilis is committed to increasing the number of locals working at the factory.
In the same vein, the Luyang assemblyman assured the workers’ welfare will be taken care of despite any management and operational issues which often come with operating a large factory or company, and his ministry will facilitate any claims raised by the workers there, including late salary payments.
“We will not prioritise industrial development at the expense of workers’ rights as we want the workers to obtain skills and have high paying jobs in SK Nexilis. As a minister, it is my job to protect and safeguard Sabahans’ rights.
“If there are any issues, we will address them as we constantly communicate with SK Nexilis. We want the workers, investors, companies, supporting industries, and Sabah as a whole to benefit from this project,” he said.
Phoong added SK Nexilis currently sources its raw materials from other countries, but it plans to bring in a subsidiary company to invest RM300 million into the project, which will allow them to have a higher production capacity with smaller amount of raw materials.
Meanwhile, SK Nexilis Malaysia chief executive officer (CEO) Shin Dong Hwan said he is honored to celebrate the factory’s first shipment of copper foil as it marks a significant milestone in their journey towards success.
He said the achievement will simultaneously contribute to the growth of Sabah’s economy, particularly in attracting and increasing the number of foreign investors to select Sabah as the paramount destination for international investments.
Also present at the inaugural shipment ceremony were Consul General of the Republic of Korea in Kota Kinabalu, Joo Joong Chul, MIDE permanent secretary Datuk Thomas Logijin, Invest Sabah CEO Datuk Madiem Rayapan and KKIP CEO Lawrence Kim.