PENANG, Malaysia, Sept 29 (Bernama) -- Scandinavian IBS Sdn. Bhd. (SIBS), a Sweden-based Industrialised Building System (IBS) and one of SIBS Group’s five companies with more than 850 employees has undertaken an expansion with an additional 15 acres of land size at their new plant located in Penang Science Park, Simpang Ampat, Penang. This expansion project is anticipated to increase the production lines to approximately to four (4) more compare to the current production line and this is driven by the huge demand for SIBS production with an investment worth of RM500 million in few phases for the next five years. The project is expected to provide an additional 1,200 employment opportunities to the locals and the opportunity to deliver to more markets and product categories. The expansion project is also expected to create an additional value of RM552 million (USD120 million) in local sourcing of raw materials and components.

The Chief Minister of Penang YAB. Tuan Chow Kon Yeow said “This project will bring in investment, strengthen the socio-economy, increase job creation as well as provide opportunities for local talents to upskill. The investment will stimulate local businesses, thus contributing significantly towards the economy of Penang by maintaining and strengthening its local supply chains.” 

"I would like to congratulate SIBS on its new facility plant which is four times the capacity of the current factory. This will also create more engineering experts in Industrialised Building System (IBS) for Penang. I am glad that the company once again have chosen Penang for the IBS expansion” he added.

Datuk Wira Arham Abdul Rahman, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) said “SIBS’ continued expansion demonstrates Malaysia’s strong economic fundamentals such as our vibrant innovation ecosystem particularly in IBS industry, as well as our reliable infrastructure and connectivity to the region and the world. The company’s presence will also encourage the growth of local companies within the IBS industry.”

“To serve investors better, MIDA has renewed its aspirations and aligned its facilitation and support services with the National Investment Aspirations (NIA) framework, which includes the elements of high value-added, high technology, knowledge and capital intensive, skills-intensive and provision of high-income jobs. MIDA will remain committed to growing the IBS industry in collaborative efforts with our strategic investors, such as SIBS. This is a key win for Malaysia in realising our aspiration to attract high-quality investments from reputable companies all around the world” added Datuk Wira Arham.

His Excellency Dr. Joachim Bergström, Ambassador of Sweden to Malaysia, said, “Sweden is a pioneer in innovation and industry. In the last few years, we’ve seen an incredible development of new methods and materials being developed within construction that are cost effective and enhances liveability and safety. SIBS is at the forefront of the development, and it brings me great joy to see that they are expanding their operations here in Penang, bringing in the leading global solutions within its field, sharing that knowledge and providing many jobs to the local community.”

“SIBS has put Malaysia on the map as the leading hub for manufacturing related construction industry. Using technology, company has revolutionised a very conservative industry. The investment is important for Malaysia not only directly but also indirectly in the thousands of jobs created in the supply chains around the country” says Erik Thomaeus, CEO of SIBS Group.

“Malaysia is devoted to technology and companies built around technical innovation, having the world’s leading ‘Construction Tech’ company in Malaysia. This is another proof of the genuine attractiveness of Malaysia as a hub for business and innovation. Our expansion in Malaysia will be divided in phases and eventually will achieve approximately RM500 million of total investment”, he added.

The manufacturing related construction sector has been playing a significant role in the aggregate economy of the country in term of its contribution to revenue generation, capital formation and employment creation which ultimately support the gross domestic product (GDP) and the socio-economic development of Malaysia.

YB. Dato’ Haji Abdul Halim bin Haji Hussain, Penang State Executive Councillor for Trade, Industry and Entrepreneur Development attended the event representing the Chief Minister of Penang. Also, in presence were His Excellency Dr. Joachim Bergström, Ambassador of Sweden to Malaysia and Ms. Najihah Abas, Executive Director Manufacturing Development (Non-Resource) from MIDA.

The Government provides both fiscal and non-fiscal incentives to the companies undertaking the manufacturing of IBS. A special incentive has been introduced for manufacturers for adopting any of the seven recognised systems which include Precast Concrete System, Formwork System, Steel Framing System, Block Work System, Timber Framing System, Innovative System and IBS Modular System/Components Modular. For the period of 2015 to June 2022, MIDA has approved a total of 95 IBS manufacturing projects, of which, 22 were related to the IBS Modular System.

About MIDA

MIDA is the government’s principal investment promotion and development agency under the Ministry of International 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 20 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 Twitter, Instagram, Facebook, LinkedIn, Tik Tok and YouTube. 

About Scandinavian IBS Sdn. Bhd. 

Scandinavian IBS Sdn. Bhd. started in 2016 and the first factory was finalized in 2018. We are the manufacturer of a Sweden-based Industrialized Building Systems. We build homes, also known as prefabricated buildings, in a controlled environment to be assembled in the residential and commercial area. Our business produces residential buildings in a steel frame modular form: living room, bathroom, stairs, everything an apartment needs in a manufacturing setting. The plan from the beginning was to build a second factory after the first factory was fully established and producing at full capacity. We reached our max production capacity in the end of 2019. Hence, we launched our plan and after many years of negotiating with Penang state we purchased the second land in the beginning of 2020 for second factory. The new factory will be approximately 2 times the size of the current with 4 times the capacity. 

SIBS invest in a second factory to increase production capacity to meet the large demand from the market. We aim to present the full investment case to secure the financing of the land, construction, process machinery and increased working capital requirements. The second factory will provide an additional production capacity of around 4,000 apartments a year. When combined with the existing factory, this will increase SIBS’ total production capacity to around 5,000 apartments a year.

Intensive work has been ongoing on the building and installation of the process equipment, developed entirely by our local engineers. The factory will be operational in the third quarter of 2022 and its completion will be marked by an opening ceremony that should be attended by up to 2,000 people.

Associated images for the media release can be found at:
https://bit.ly/3ABkIOe
 
Caption for Image 1:  Left to right :
H.E  Dr.  Joachim Bergstöm, Ambassador of Sweden to Malaysia, YB Dato' Haji Abdul Halim bin Haji Hussain, Penang State Minister for Trade, Industry And Entrepreneur  Development,  Mr.  Erik  Thomaeus,  CEO  & Co-founder of SIBS Group,  Ms.  Najihah  Abas,  Executive Director, Non Resource Manufacturing Development,  Malaysian  Investment  Development  Authority (MIDA), Mr. Par Thomaeus Co-founder of SIBS Group

Source: Malaysian Investment Development Authority (MIDA)

FOR MORE INFORMATION, PLEASE CONTACT:
MIDA
Name: Ms. Rozita Ibrahim, Director
Building Technology and Lifestyle Division, MIDA
Tel: 03- 2267 3479
Email: rozita@mida.gov.my

SCANDINAVIAN IBS SDN. BHD.
Name: Mr. Lawrence Chua
Director
Tel: 04-506 2940
Email: slchua@sibs.com.my

--BERNAMA