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News from Asia-Pacific

Home-Grown Machinery Halves Cost

Contract manufacturers in Malaysia are expected to enjoy cost savings of more than 50% with the set up of two local manufacturers of computer numerically controlled (CNC) machines. In the electronics industry, CNC machines are used mainly for drilling and routing of PCBs and other materials. The high cost of such machinery had in the past prevented many supporting industries from carrying out full automation.

Technology Park Malaysia (TPM) embarked on an ambitious RM100 million plan to make 30 CNC machines a month to cater to the local demand for such equipment. TPM currently produces 15 CNC units a month. According to company CEO Datuk Mohamad Salleh Ismail, TPM has partnered with Japan's Yamazaki Mazak Corp, one of the world biggest CNC machine manufacturers, for making the machinery. He said TPM's target is to build and assemble CNC machines with at least 90% local component content. "60% of the components are sourced locally and of that, 45% is locally made. We buy the 15% balance from local suppliers," he added.

The Master CNC 10HVA machine from TPM will be sold for between RM120,000 and RM200,000 per unit, which is less than half the price of imported models.

Using Local Components

Also pioneering CNC manufacturing is Ipoh-based Numac Machine Tooling. The three-year old company has tied up with Austria-based Emco Maier GmbH to manufacture a specific range of equipment for the Asia-Pacific market.

Numac's managing director Kim Goh said that 60% of the components used for the final product were made in house. The use of local components brought manufacturing costs down by 75%.

by Anita Devasahayam

(May 2003 Issue, Nikkei Electronics Asia)






Copyright (c) 1996-2003, Nikkei Business Publications Asia Ltd,
Nikkei Business Publications, Inc. All Rights Reserved.
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