3 major Chinese heavy industry firms set to establish operations in Labuan

3 major Chinese heavy industry firms set to establish operations in Labuan

21 Sep 2024

Three prominent China-based heavy industry companies are set to expand their operations to Labuan, recognising the island’s strategic potential as a key economic hub.

Labuan Corporation (LC) board member Datuk Seri Liew Shan Wen said the companies — Hangzhou-based Siemens Energy High Voltage Circuit Breaker Co Ltd, Laian KLX Industrial Liability Co Ltd, and InnoVision Capital — are well-established players in China’s heavy industry sector.

“These companies plan to manufacture iron and aluminium products in Labuan, with raw materials sourced from China,” Liew told Bernama after meeting representatives from the companies at Menara Perbadanan Labuan today.

He added that the representatives have already visited several potential sites to establish factories and warehouses.

“They have shown particular interest in leasing the existing facilities at the Labuan Halal Hub Complex. As the local authority, LC is ready to provide support and facilitation,” Liew said.

He also shared that the companies are targeting key energy companies in Malaysia, including Tenaga Nasional Bhd (TNB), as well as energy companies in Thailand, the United States, and Mexico.

Liew also said the LC will arrange meetings with the Ministry of Finance and the Malaysian Investment Development Authority to discuss potential tax incentives and approval for ‘Made in Malaysia’ status for the iron and aluminium products manufactured by the companies.

Laian KLX general manager Jason Pan expressed optimism after the briefing from LC.

“We are more confident in making this plan a reality. We’ve agreed to utilise the existing Halal Hub Complex for our factory and warehouse. The only remaining issue is finalising the tax incentives that can be offered,” added Pan. 

Source: Bernama