Xinyi to build two factories to produce automotive glass worth RM1.5b in Melaka

JASIN (Dec 29): Asia's largest glass manufacturer Xinyi Glass Holdings Ltd will invest about RM1.5 billion for the construction of two new factories that will produce glass for use in the automotive industry in the Elkay Industrial Park, Lipat Kajang here.

State senior exco member for investment, industry and entrepreneur development Datuk Seri Ab Rauf Yusoh said the two factories will be built on 52.61 hectares in the area and are expected to begin development within the next six months.

"Based on the discussions held earlier, Xinyi is very interested in the facilities and surrounding areas in Lipat Kajang and plans to expand operations with an additional capital of about RM1.5 billion in the near future.

"So all parties, including the state government and agencies present today, are working to help Xinyi to start a factory expansion project in Melaka because Xinyi is one of the largest glass manufacturers in the Asian region," he told reporters after visiting Xinyi here on Wednesday (Dec 29).

Ab Rauf said the construction of the two factories is expected to create about 800 job opportunities, especially for locals in Melaka and, to date, the company had employed more than 1,700 workers with 55% of them being locals in the state.

He said the Hong Kong-based company had brought in investments amounting to RM2.2 billion since starting operations in Melaka in 2016.

He said that apart from that, Xinyi is also interested in investing to upgrade facilities at the Tanjung Bruas Port in Tanjung Kling here as the company will use the port as a route to export the glass it produces abroad.

"Xinyi chose the Tanjung Bruas Port instead of Port Klang and within a month, there were already two overseas shipments involving 500 containers, each shipment using ships at the port," he added.

In another development, he said the state government would hold talks with the management of the Tanjung Bruas Port, Melaka Waterfront Economic Zone and the agencies involved within the next two weeks to coordinate efforts to improve facilities at the port.

"The amount of investment will be determined according to the capacity of the facilities that will be developed but we estimate the project to upgrade the port to cost between RM1 billion and RM2 billion," he added.