Friday, May 29, 2009

US-based National Instruments to invest US$80 million (Updated)

National Instruments, a global leader in test, control and embedded design hardware and software for engineers and scientists, today announced its first investment in Malaysia to establish an integrated manufacturing, R&D and operations facility, which will include a supply chain management hub, IT development and financial services centre in Malaysia.

The company will be investing about USD80 million in the first and second phases to manufacture and service test, measurement and automation hardware and software products. This major announcement was made at a media conference, held at the Malaysian Industrial Development Authority (MIDA).

"We are happy to welcome National Instruments to Malaysia and pleased that the company has chosen to invest in our country. Malaysia offers a resource-rich, competitive environment that is ideal for higher value-add companies, and we look forward to a successful collaboration with National Instruments", said Minister of International Trade and Industry (MITI), Tan Sri Muhyiddin Yassin.

The facility will be located on a 6.8-hectare site in Penang and employ about 1,500 people, NI president and chief executive officer, Dr James Truchard, said here on Monday. The plant will be the Group's first in Asean and NI's third major global centre, after the US and Hungry.

"Our goal in Malaysia is to be a major centre in manufacturing as well as R&D globally by 2015 when the plant is running at full capacity," Truchard said. Malaysia was chosen to be a major hub in R&D and operations for NI due to the country's pull factors, which among others include, its competitive business environment and highly skilled workforce.

The close proximity to Asian markets will also enable the company to respond to customer demand in the region and provide better access to software and hardware services such as product calibration.

NI chief financial officer and senior vice president of manufacturing and information technology (IT) operations, Alex Devern, said Penang was selected because of its availability of electrical and electronics resources.

"We anticipate that by 2015, the site in Penang will be capable of generating 40 percent of global revenue amounting to nearly US$650 million per annum", said Devern.

Truchard said the close proximity of the new facility to the Asian market would also make it possible for the company to respond more quickly to customer demand in the region. He also said that despite the current difficult economic conditions, NI would continue to invest in R&D to enhance its technological edge.

Tan Sri Muhyiddin also added, "The setting-up of National Instruments' integrated operations will contribute towards Malaysia's move up the value chain in the manufacturing sector. As the leader in computer-based measurement and automation hardware with long-term track record of growth and profitability, National Instruments' projects in Malaysia will lead to technology transfer and the acquisition of skills among Malaysians."

Headquartered in Austin, Texas, N1 has more than 5,000 employees and direct operations in nearly 40 countries. Founded in 1976, the company develops and manufactures software and hardware products that engineers and scientists use for test, control and embedded design applications.

With record revenue of US$740 million in 2007, NI has a strong financial track record, being consistently profitable since 1990.

Adapted from BERNAMA, Business Times and MIDA's Media Release, 3 and 4 November 2008


0 comments: