Plexus Breaks Ground on Sixth Manufacturing Facility, Part of RM1-Billion Expansion in Malaysia
Penang, July 26, 2024 – Plexus Corp. (NASDAQ: PLXS), a global leader in partnering with companies to create products that build a better world, celebrated a significant milestone today with the groundbreaking ceremony of its sixth facility in Penang, Malaysia. The state-of-the-art facility, named “Plexus Bridgeview”, is located in the Bandar Cassia Technology Park and spans a sprawling 20-acre plot, encompassing an impressive 560,000 sq. ft. cutting-edge infrastructure. Plexus estimates an investment of RM1 billion over the next three years, signalling its commitment to growth in Malaysia and the Asia-Pacific region.
With a footprint established in Malaysia over 20 years ago, Plexus employs more than 10,000 team members across five manufacturing sites and one design centre in Penang. This new upscale facility will enable the expansion of their Semiconductor Capital Equipment business, supporting Malaysia’s New Industrial Master Plan (NIMP) 2030, and the ongoing growth of their business supporting leading Healthcare and Life Sciences companies. This expansion will also create approximately 1,800 new high-skilled job opportunities in the region.
The Minister of Investment, Trade and Industry (MITI), YB Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz congratulated the company, stated, “Plexus’ RM1-billion expansion clearly affirms Malaysia’s position not only as a preferred investment destination for tech-based MNCs, but also as a country that is serious about the swift implementation of investors’ commitments. In line with the targets of the New Industrial Master Plan (NIMP) 2030, this project will create a ripple effect by generating high-skilled job opportunities and developing our E&E supply chain ecosystem to serve a growing global semiconductor, and healthcare device markets. This also supports our efforts in positioning Malaysia as a regional manufacturing and services hub for ASEAN and Asia.”
Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the MIDA, commented, “MIDA is thrilled to see Plexus’ trust and commitment to expanding its operations in Malaysia with the establishment of its sixth manufacturing plant. Our country’s robust electrical and electronics (E&E) ecosystem, the exceptional capabilities of our local talent, and our well-developed semiconductor supply chain provide the perfect foundation for investors like Plexus. We are buoyed by the opportunities this investment will bring for Plexus, the local community, and the industry, and we look forward to Plexus’s continued advancement in Malaysia.”
Mr. Victor Tan, Plexus’s Regional President APAC, stated “The establishment of the new Plexus Bridgeview facility demonstrates our commitment to growth within the region, and provides a strong opportunity to meet the growing needs of our valued customers. We are grateful for the facilitation and continued support of MITI, MIDA and Invest Penang to help enable these important milestones on Plexus’ growth journey.”
Plexus is committed to sustainability throughout its global business operations. The company continues to elevate the standards of business conduct and integrate sustainable and responsible business practices into its enduring strategy. Through focused efforts around product impact, environmental impact, social impact and sound corporate governance, the company is able to deliver differentiated value to various stakeholders.
As part of its commitment to being a sustainable and responsible business partner, Plexus contributes to non-profit causes within Malaysian communities and encourages employee volunteerism through charitable giving initiatives, STEM education sponsorships and collaborations. Notably, Plexus has installed solar panels at the Plexus Islandview and Seaside facilities and plans to continue this effort across all remaining facilities to reduce its carbon footprint.
Plexus is excited to embark on this ambitious endeavour of establishing a new facility and looks forward to contributing to the realisation of Malaysia’s NIMP2030, fulfilling the company’s vision of creating products that build a better world.
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About MIDA
MIDA is the government’s principal investment promotion and development agency under the Ministry of Investment, Trade and Industry (MITI) to oversee and drive investments into the manufacturing and services sectors in Malaysia. Headquartered in Kuala Lumpur Sentral, MIDA has 12 regional and 21 overseas offices. MIDA continues to be the strategic partner to businesses in seizing the opportunities arising from the technology revolution of this era. For more information, please visit www.mida.gov.my and follow us on X, Instagram, Facebook, LinkedIn, TikTok and YouTube channel.
About Plexus
Since 1979, Plexus has been partnering with companies to create the products that build a better world. We are a team of over 20,000 individuals who are dedicated to providing Design and Development, Supply Chain Solutions, New Product Introduction, Manufacturing and Sustaining Services. Plexus is a global leader that specializes in serving customers in industries with highly complex products and demanding regulatory environments. Plexus delivers customer service excellence to leading companies by providing innovative, comprehensive solutions throughout a product’s lifecycle. For more information about Plexus, visit our website at www.plexus.com.
For more information, please contact:
MIDA
Ms. Noor Suziyanti Saad
Director, Electrical and Electronics Division, MIDA
Email: [email protected]
Tel: +603-2267 3575
Plexus
Media Contact in Penang, Malaysia
Yew-Choong Saw
+60.4.632.2080
[email protected]
Investor Contact
Shawn Harrison
+1.920.969.6325
[email protected]
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The statements contained in this press release that are guidance or which are not historical facts (such as statements in the future tense and statements including believe, expect, intend, plan, anticipate, goal, target and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include the ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; the effect of inflationary pressures on our costs of production, profitability, and on the economic outlook of our markets; the effects of shortages and delays in obtaining components as a result of economic cycles, natural disasters or otherwise; the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the lack of visibility of future orders, particularly in view of changing economic conditions; the economic performance of the industries, sectors and customers we serve; the outcome of litigation and regulatory investigations and proceedings, including the results of any challenges with regard to such outcomes; the effects of tariffs, trade disputes, trade agreements and other trade protection measures; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customer base and deliver product on a timely basis; the risks of concentration of work for certain customers; the particular risks relative to new or recent customers, programs or services, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate terms of agreements, and the lack of a track record of order volume and timing; the effects of start-up costs of new programs and facilities or the costs associated with the closure or consolidation of facilities; possible unexpected costs and operating disruption in transitioning programs, including transitions between Company facilities; the risk that new program wins and/or customer demand may not result in the expected revenue or profitability; the fact that customer orders may not lead to long-term relationships; our ability to manage successfully and execute a complex business model characterized by high product mix and demanding quality, regulatory, and other requirements; the risks associated with excess and obsolete inventory, including the risk that inventory purchased on behalf of our customers may not be consumed or otherwise paid for by the customer, resulting in an inventory write-off; risks related to information technology systems and data security; increasing regulatory and compliance requirements; any tax law changes and related foreign jurisdiction tax developments; current or potential future barriers to the repatriation of funds that are currently held outside of the United States as a result of actions taken by other countries or otherwise; the potential effects of jurisdictional results on our taxes, tax rates, and our ability to use deferred tax assets and net operating losses; the weakness of areas of the global economy; the effect of changes in the pricing and margins of products; raw materials and component cost fluctuations; the potential effect of fluctuations in the value of the currencies in which we transact business; the effects of changes in economic conditions, political conditions and tax matters in the United States and in the other countries in which we do business; the potential effect of other world or local events or other events outside our control (such as the conflict between Russia and Ukraine, conflict in the Middle East, escalating tensions between China and Taiwan or China and the United States, changes in energy prices, terrorism, global health epidemics and weather events); the impact of increased competition; an inability to successfully manage human capital; changes in financial accounting standards; and other risks detailed herein and in our other Securities and Exchange Commission filings, particularly in Risk Factors contained in our fiscal 2023 Form 10-K.
