National Instruments secures land in Batu Maung for Penang operations

Last year, I chanced upon a press conference by US-based multi-national company National Instruments to announce their investment of USD80 million in Penang. So this year, it should be appropriate that I follow up on this matter.

Yesterday, National Instruments' vice-president of manufacturing Rob Poterfield (the one shaking hands, on the right) was in Penang to ink a land lease agreement with the Penang Development Corporation. The occasion was witnessed by Chief Minister Lim Guan Eng and Deputy Chief Minister II Dr P Ramasamy.

At a press conference after the event, Poterfield said that about 1,500 jobs would be created when they begin recruiting workers for its planned research and development facility in Batu Maung. Those recruited would be sent for extensive on-the-job training at the National Instruments headquarters in Austin, Texas, for a year.

“We have secured 6.8ha of land in Batu Maung for the facility which cost us about RM36mil. We hope the site can be ready by next year. The company is developing the facility as part of our ongoing plan to expand our global operations."

"Malaysia offers an exceptionally skilled workforce that can help National Instruments provide engineers and scientists with the hardware and software they need to develop the innovative applications that are improving our world," said Robert Canik, vice-president of R&D for instrument and distributed control at National Instruments. "This talent-rich environment was a key factor in selecting Malaysia, and Penang in particular, as the site for our new R&D operations facility, and we are excited that the people of Penang will be an integral part of our companys success."

The company develops and manufactures software as well as hardware for engineers and scientists. Poterfield said the recruitment included posts in manufacturing, product development, R&D, shared services, information technology and finance. “In the next few years we plan to invest about RM280mil in Penang,” Poterfield said.

"National Instruments is bringing high-value jobs to Penang and we are confident that the people here have the training and aptitude necessary to deliver tremendous value to National Instruments," said Guan Eng. "Penang offers many resources that make it a competitive business environment, and we are pleased that National Instruments is making such a significant contribution here."

Courtesy of Quah, Seng-Sun

National Instruments investing USD 80 million in Penang Plant

Two days ago, I briefly dropped by the ballroom at Hotel Equatorial to witness a press conference called by US-based National Instruments to announce their investment of USD80 million into their new facilities in Penang.

I was a bit late so I did not get to see the Chief Minister speak but I learnt later that National Instruments would be setting up their new R&D and operations facilities on a 6.8-hectare site on the island. It's targeted to employ about 1,500 people when it opens in 2010 but of course, spill-over effect on the local economy - SMEs and other support services - will benefit even more of the local population. I also learnt that this million-dollar deal was only sealed 17 days earlier so I'm quite impressed by the speed with which this announcement was made public. There's a will shown by the state government to get things moving fast. I like it: it's professional.

The plant will be NI's first in the Asean region and third major global operations centre. NI president and CEO Dr James Truchard (left) said their management team had visited many countries and finally settled on Penang because of the environment, highly skilled workforce and the close proximity of the plant to the Asian market. "Our goal is to be a major centre of manufacturing and R&D globally by 2015 when the plant is running at full capacity."

And their CFO and senior VP of manufacturing and IT operations, Alex Devern (right), added that Penang was selected because of the availability of electrical and electronics resources. "We anticipate that by 2015, this site will be capable of generating 40 percent of global revenue amounting to approximately US$650 million annually."

NI is a global leader in computer-based measurement and automation hardware with its headquarters in Austin, Texas. It has more than 5,000 employees and direct operations in nearly 40 countries.

Courtesy of Quah, Seng-Sun

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

US-based National Instrument commits US$80m in Penang

GEORGE TOWN: US-based National Instruments (NI) has committed to invest US$80 million in next few years in Penang as it expands its operations.

NI vice president of manufacturing Rob Porterfield said on May 29 the investment would create up to 1,500 jobs in Penang.

The multinational corporation had signed a RM36 million (US$10 million) deal with the Penang Development Corporation to acquire a 17-acre site in Batu Maung for its research and development and operations.

Also present at the signing ceremony were Penang Chief Minister Lim Guan Eng, his deputy P. Ramasamy, PDC general manager Datuk Rosli Jaafar and NI vice president and general counsel David G Hugley.

NI has more than 5,000 employees in 40 countries and sells off the shelf software such as NI LabVIEW and modular cost effective hardware to more than 30,000 companies worldwide.

Porterfield said NI was recruiting senior engineers and other personnel for key R & D positions for its R & D operations which starts this year-end.

"We are looking for experienced engineers to fill these positions as section managers as well as digital, analog, mechanical and software technical leads to work on a line of embedded controllers.

"Once hired, they will travel to our headquarters in Austin, Texas to receive extensive on the job training for a year," he added.

Porterfield said there was a slight delay in starting its manufacturing operations due to the current global economic situation.

He added Penang offered exceptionally skilled workforce comprising engineers, scientists and this was a key factor to select Malaysia and Penang in particular for the new R&D plant.

"We will invest up to 16 per cent of our revenue in R & D and Penang will play a key role for NI in the years to come," he added.

He also said 50% of the proposed 1,500 workforce would be for manufacturing and the rest for its R & D, product development, shared services, IT and finance positions.