Leuze expands with new plant in Malaysia

To tap into the Southeast Asian market, Leuze had already established a subsidiary in China in 2006. Another followed in Singapore in 2015. However, due to the high demand from the Asian markets, another international Leuze production location is being constructed along the New Silk Road in Malacca, Malaysia. "The construction of a new plant in Malaysia in Southeast Asia represents for us a strategically important component in our global growth strategy," says Matthias Höhl, Vice President Asia at Leuze, ina press release. "Asia is a rapidly growing market in the area of electronics and promises significant undeveloped potential. For example in the area of laboratory automation, one of our focus industries." The new production location operates as Leuze electronic assembly Malaysia Sdn. Bhd. and is a wholly-owned subsidiary of Leuze electronic GmbH + Co. KG. The plant is being constructed on a site area spanning over 17'000 square metres. Completion is scheduled for the first quarter of 2022. In an initial expansion phase, approximately 4'500 square metres will be prepared for production and warehouse logistics operations as well as 1'000 square metres for administration. The total usable floor space will be just under 7'000 square metres – of which approximately 2'000 square metres will be used for production. Following the initial expansion phase, up to 200 new employees will work in the new Leuze plant in Malacca. With the new production location, Leuze's continental structure in Asia will be expanded further. "By producing our sensor solutions at multiple locations around the world, our logistics flows can be optimized and the delivery capability further improved," says Jochen Wimmer, COO of the Leuze Group. Production currently already takes place in Germany, in the USA, in Brazil and in China. In Malacca, Leuze will primarily produce sensors for the local Asian market. "A multiple-location production strategy contributes to the optimization of our production strategy worldwide. During the coronavirus pandemic, for example, transfers and compensations are possible that positively influence our global capability to act and deliver with respect to our international customers. This allows us to significantly minimize risk. Particularly since we make a system-relevant contribution, for example, in intralogistics and in laboratory automation with the use of our sensors," continues Jochen Wimmer.