ACM: Pursuing Excellence in Malaysia’s Aerospace Industry

In a world where resilience and innovation are paramount, Malaysia’s aviation and aerospace industries have shown their mettle. Just four years ago, the sector faced significant challenges due to a slowdown in demand. However, today, with unwavering support from Aerospace Composites Malaysia Sdn. Bhd. (ACM) and industry players, Malaysia’s aviation and aerospace industries have emerged stronger than ever.

Composites manufacturing plays an important role in the aerospace industry, contributing to the development of lightweight, high-strength components that enhance aircraft performance and efficiency. ACM, a joint-venture between two (2) American aerospace companies, The Boeing Company and Hexcel Corporation, was founded in 1998 and started operations in 2001 with a vision to become the premier aerospace composites manufacturing company globally.

Located in Bukit Kayu Hitam, Kedah, ACM specializes in manufacturing high-quality primary and secondary aerospace structure composite bond assemblies and sub-assemblies for Boeing commercial aircraft. From humble beginnings, ACM now delivers over 200,000 aerospace parts annually out of its 47,200-square-meter factory, encompassing a wide range of products such as fixed leading edge panels, fixed trailing edge assemblies, aileron skins, empennage detail, and many other components.

Leadership at ACM has fostered a culture where safety and quality is everyone’s responsibility. Rigorous training, best practice sharing, communications and awareness campaigns have garnered the company accolades such as the Boeing Chairman’s Safety Award in 2017 and the Boeing Chairman’s Quality Award in 2019.

The past four years have been challenging for ACM, mirroring the turbulence experienced by the aerospace industry. Supply chain disruptions, labour shortages and reduced demand for new aircraft led to production delays and uncertainties. Despite facing work stoppages and the additional challenge of reduced 737 production rates, ACM proactively pursued efficiency and has come out of the down turn stronger.

Using lean manufacturing principles, ACM improved capacity and efficiency, freeing up additional factory space by an additional 7,800 square meters. In 2021, ACM completed a monumental transfer of 890 new assemblies, doubling its revenue. In 2022, ACM achieved its highest-ever revenue and will break that record again in 2023.

ACM understands that behind every successful aerospace manufacturing company are skilled and dedicated employees. The company places a strong emphasis on investing in its workforce, offering comprehensive training programmes to foster a culture of innovation and idea generation. The collaboration ACM has with universities and technical institutions facilitates their employees to upskill and develop professionally. These programmes attract and retain top talent. ACM’s “ACM Cares” Programme focuses on employees’ well-being, including physical health, mental wellness and work-life balance. Notably, the company’s Smoking Cessation Programme has seen over 40% of smokers successfully quit, leading to ACM becoming a ‘smoke-free facility’ in January 2023. The effort was recognised by the Ministry of Health with a ‘Blue Ribbon’ award for being the first manufacturing company in Kedah to become a smoke free work place.

In 2022, the company established a new section to spearhead a future factory roadmap. This roadmap will enhance plant layout, processes, technologies, digitisation, communications and engagement to align with anticipated future business growth. The projects are focused on creating an environment to enable collaboration amongst employees.

ACM’s close collaboration with MIDA has been instrumental in growing its business and capabilities. MIDA, the principal investment promotion agency of the Malaysian Government for industrial development and foreign direct investment ventures, has assumed a key role in ensuring ACM continues to deliver high-quality products to meet customer demand. This collaboration underscores how the synergy between the private and public sectors can lead to business and national success.

As we look ahead, ACM has an exceptional opportunity to grow and provide value to stakeholders while delivering cost-competitive, high-quality products on time. Their commitment to the well-being and safety of their employees is unwavering, making ACM a company to watch as it aims to be the employer of choice in Malaysia.