LIMA 2019 News: Sapura Aerospace Technologies to build RM100m hi-tech facility

Aerospace Industry

LANGKAWI, March 26 — Sapura Aerospace Technologies, a joint venture between Sapura Industrial Bhd and two Japanese aerospace companies, will be investing RM100 million over the next five years to build a high-technology facility on a 2.02-hectare site in the Greater Klang Valley.

The two Japanese companies are Wada Aircraft Technology Co Ltd and Aero Inc.

Sapura Industrial in a statement today said Sapura Aerospace Technologies plans to construct a purpose-built high-specification facility with more than 200 staff to be trained under specially-designed programmes and accreditations.

“Production is expected to ramp-up in 2021. Sapura Aerospace Technologies is envisaged to immerse itself into, and contribute significantly to, the Malaysian aerospace ecosystem,” it said.

The exchange of joint venture agreement documents was witnessed by Prime Minister Tun Dr Mahathir Mohamad in conjunction with the Langkawi International Maritime and Aerospace 2019 (LIMA’19) exhibition which begins today until March 30 at the Mahsuri International Exhibition Centre and Resorts World Langkawi.

Sapura Industrial said the shareholders' agreement represents a synergistic collaboration between the three companies in incorporating Sapura Aerospace Technologies, which will provide manufacturing and assembly of aerospace components, sub-assemblies, tooling, jigs and fixtures, for the aerospace industry in Malaysia, Japan and globally.

“Sapura Aerospace Technologies will benefit from the aggregated and combined resources of the three shareholders which will bring together 110 years of manufacturing experience, a 1,500-strong team, and the operations of 11 aerospace facilities.

“It will synergistically and quickly deploy the expertise of these three companies in various areas of aerospace manufacturing, business management, customer reach and deliverability,” it said.

It said the companies would share capabilities including manufacturing experience and facilities, technical expertise, human resource development, professional network and business support.

“Sapura Aerospace Technologies will also provide better service and competitive solutions to existing and potential customers who are major players in aircraft manufacturing and provide a good platform to expand its customer base in Japan, Malaysia and globally,” it said.

It said the joint venture company is among the first Malaysian companies offering a specialised and focused suite of services, particularly in high-value chain aircraft assembly and machining works, to Malaysian, Japanese, regional and envisioned global potential customers.

It added that the specialised expert services to be offered by Sapura Aerospace Technologies include advanced machining, assembly of large key sections of aircraft, advanced manufacturing, high-level engineering and a wide variety of manufactured materials which could potentially attract customers such as Boeing and Airbus. — Bernama

26 March 2019

Chances high Malaysia may buy China jets

By Opalyn Mok

LANGKAWI, March 26 — Amid the kick-off of the 5th Langkawi International Maritime and Aerospace Exhibition 2019 (LIMA), International Trade and Industry Minister Datuk Ignatius Darell Leiking indicated the possibility for Malaysia to buy fighter jets from China has increased.

He said Malaysia and China had good ties and Prime Minister Tun Dr Mahathir Mohamad had specifically mentioned buying jets from China due to its impressive technology.

“Even the prime minister is impressed with China’s technology,” Leiking said during a press conference at the exhibition here in response to Dr Mahathir’s remark that Malaysia could buy fighter jets from China if the European Union (EU) continues its discriminatory stance against Malaysian palm oil.

Leiking said the Chinese jets are also more cost effective.

He added that there are also other countries with similar impressive technology that can be considered, such as those from Turkey.

“There are many interesting aircrafts on display here, with impressive technology, the China booth is particularly interesting,” he said, referring to the exhibits at LIMA.

The trade minister said Malaysia is aiming to top last year’s RM14.4 billion revenue, and gave a figure of between RM15 billion and RM16 billion this year.

He said the industry has managed to maintain its positive growth since the implementation of the Blueprint 2030 led by the National Aerospace Industry Coordinating Office (NAICO).

“About 24,500 highly skilled workers are serving in this industry,” he said when announcing the aerospace and shipbuilding and ship repair (SBSR) industries performance for 2018 at the

According to the Malaysian Investment Development Authority (MIDA), there are bright investment prospects for the aerospace and SBSR industries.

MIDA Chief Executive Officer Datuk Azman Mahmud said they are targeting at least RM1 billion in local and foreign investments for the aerospace industry in 2019.

“We have already confirmed investments of RM500 million and we hope to reach our target soon,” he said in the same press conference.

The aerospace industry recorded RM816.3 million in investments in 2018 with 41 per cent of it from foreign investments.

As for the SBSR industry, MIDA is looking at attracting RM150 million worth of investments in 2019.

The SBSR industry in Malaysia is a subset of the marine industry and the total revenue it recorded in 2018 was RM7 billion, according to Leiking.

He said SBSR exports have also been increasing where it recorded RM1.29 billion in 2018 as compared with RM1.08 billion in 2017.

He said two expansion projects worth RM33 million were approved in the SBSR industry in 2018.

“These are wholly Malaysian-owned projects which are expected to create 51 new jobs,” he said.

Leiking added that three states, Selangor, Kedah and Negri Sembilan have highlighted their initiatives to support the Malaysian Aerospace Industry Blueprint 2030.

He said Selangor announced its own action plan known as Selangor Aerospace Action plan covering seven areas with 30 action items.

“Kedah has launched its plan to develop Kulim International Airport that will become the catalyst to position Kedah as one of the leading aerospace states in Malaysia,” he said.

Negri Sembilan has developed a comprehensive development plan focusing on aerospace industry under its Malaysia Vision Valley project.

Leiking is confident that the aerospace industry will continue to thrive as the Asia Pacific region is expected to have the highest growth in new aircraft delivery for the next decade.

He said the SBSR industry too has potential to grow as businesses can look at new areas of maritime and marine equipment products.

Miti: Malaysia’s aerospace industry attracted investments of RM9b from 2013-2018

22 hours ago on 27 March 2019

                                                                                                                                                                                    LANGKAWI, March 27 — Malaysia’s aerospace industry attracted RM9.01 billion in investments over the last six years, said Ministry of International Trade and Industry secretary general Datuk Lokman Hakim.

He said 50 projects were approved for the industry during the period.

“In 2018 alone, it attracted 11 projects worth RM816.3 million in approved investments with 41 per cent coming from foreign sources,” he said in his opening remarks at the Seminar on the Aerospace Industry here today.

The seminar was held in conjunction with The Langkawi International Maritime and Aerospace 2019 (LIMA’19) exhibition which began yesterday and ends on March 30 at the Mahsuri International Exhibition Centre (MIEC) and Resort World Langkawi (RWL).

Lokman said Malaysia had the right factors to be an outsourcing centre for aerospace products and services.

He said since the launch of MEASAT-1 in 1996 and the first Malaysia Aerospace Industry Blueprint in 1997, the industry had maintained positive growth and was now recognised for its design and manufacturing capabilities for composites, aircraft components and avionics systems.

“We have developed a strong supply chain, comprising both global and local industry players and companies such as Airbus, Boeing and Rolls Royce,” he added.

Lokman said to attract more quality investments into the industry the government highly encouraged strategic collaborations between local vendors and multinational companies to explore mutually profitable business opportunities.

“Given the growing demand for commercial aircraft in the Asia Pacific region, we are confident that the aerospace industry in Malaysia will remain vibrant and thriving for many years to come,” he added.

He said it was also essential for the country to secure more “design and build” work packages and become a “risk sharing partner” with original equipment manufacturers from the early stages of the aircraft’s life cycle.

“Progressive technology development is important for Malaysia’s aerospace industry to grow. There must be a strong will and commitment on the part of local companies to continuously expand their capacity,” Lokman 

Dr M sees Malaysian aerospace soaring to new heights

LANGKAWI, March 26 — The aerospace industry here will keep growing courtesy of RM816.3 million in approved investments approved last year, Prime Minister Tun Dr Mahathir Mohamad said today.

The investments will fund 11 new aerospace investment projects in the country, he added.

“It is expected to generate more than 1,500 employment opportunities,” he said in his speech at the opening ceremony of the 15th Langkawi International Maritime and Aerospace Exhibition (LIMA’19) at the Mahsuri International Exhibition Centre (MIEC) here.

The Malaysian Investment Development Authority (MIDA) will continue to play a critical role in attracting more aerospace investments here, the prime minister added.

This is in line with the government’s plans to make Malaysia a leading aerospace nation in South East Asia that was spelt out under the Malaysia Aerospace Industry Blueprint 2030.

“As of today, 19 key initiatives of the Blueprint are being implemented by the National Aerospace Industry Coordinating Office,” he said.

The Malaysian aerospace industry also saw positive developments last year especially in aerospace manufacturing and MRO (Maintenance, Repair & Overhaul) business.

“The industry secured RM14.4 billion revenue with 24,500 highly skilled workers serving the industry,” he said, adding that aerospace manufacturing still led the industry with 48 per cent market share while MRO accounted for 46 per cent.

Dr Mahathir said Malaysia is known for the quality of its aerospace products made here by global industry leaders such as Airbus, Boeing, Rolls-Royce, Safran, Honeywell and Thales.

The total export of aircraft, associated equipment and parts last year was RM8.48 billion, up 20.7 per cent from 2017, and reached destinations such as the US, the UK, Singapore, China and France.

“Some of these products are being showcased throughout LIMA`19 to highlight Malaysia’s capabilities in producing world class aerospace products,” he said.

He said LIMA`19 will serve as a platform for global players to search for local suppliers involved in the export of aerospace products.

A Sukhoi Su-30MKM fighter jet takes off before the start of the Langkawi International Maritime and Aerospace (LIMA) Exhibition opening ceremony at Mahsuri International Exhibition Centre, Langkawi March 26, 2019. — Picture by Sayuti Zainudin

Separately, he said a subset of the marine industry in  Malaysia, Shipbuilding and Ship Repair (SBSR), recorded exports of RM1.29 billion last year.

This is an increase of 20.3 per cent compared with 2017 and the industry currently employs over 15,000 people.

“Our main exports under this sector are ships, boats and floating structures which included among others light vessels, dredgers, floating docks and cargo ships,” he said.

He said these products are exported to destinations such as Thailand, Australia, Nigeria, the US and Indonesia.

LIMA`19 was also now 60 per cent defence and 40 per cent commercial. It was originally an expo catering to the defence sector.

The prime minister said the defence spending in South-east Asia was set to exceed US$35 billion in 2018 while the growth of low-cost carriers in the region was also accelerating commercial procurements.

“The original equipment manufacturers (OEMs) are forecasting that by 2037, more than 4,200 new aircrafts valued at US$650 billion will be delivered to this region,” he said.

Malaysia allocated RM5.9 billion for the security sector that covers defence, public order and enforcement under Budget 2019.

The expenditure will include fitting the Malaysian Armed Forces with advanced armaments and technology to address modern security threats, the prime minister explained.

The Langkawi MP also said LIMA will aim to re-emphasise the contribution of the defence industry to the country’s socio-economic development.

“Events like LIMA should also remind everyone that the defence industry also answers to a higher calling, the national agenda,” he said.

LIMA’19 will host business delegations from 31 nations along with 390 defence and commercial companies.

A total of 195 international businesses will display their products and services over the five-day exhibition that expects around 42,000 trade visitors.