Seagate to invest $327M, expand operations in Penang

Summary:Storage manufacturer is reportedly investing 1.05 billion ringgit (US$327.51 million) in the Malaysian state over five years, with plans to purchase land of up to 70 acres.

Seagate is reportedly investing 1.05 billion ringgit (US$327.51 million) in the Malaysian state of Penang, where it will purchase land to support their operations. 

The investment will span five years and will boost the island's manufacturing industry, said Penang's chief minister Lim Guan Eng in a statement, reported The Malaysian Insider

With the investment, Seagate will purchase 40 acres of land with the option to buy another 30 acres at the Malaysian state's Batu Kawan Industrial Park. The land purchase is in line with hard-drive storage manufacturer's business model to support its long-term operations in Penang, said Lim. 

He noted that the local manufacturing sector had accounted for almost half of the state's Gross DomestiC Product in the last five years. He added that the government will continue to support the industry, which will further fuel growth in the services sector. 

According to the report, the Penang government in March 2014 launched the BPO-ICT Hub, which cost 3.3 billion ringgit (US$1.03 billion), to promote the local services industry. 

Seagate's investment follows another deal signed between the Penang Development Corp and Singapore's Temasek Holdings to establish a joint venture to develop the Penang International Technology Park and BPO Prime. Expected to take between 5 and 10 years to complete, the project will sit on a 206-acres land in Batu Kawan and cost 11.3 billion ringgit (US$3.52 billion). 

In June, Lim also announced a 1.2 billion ringgit (US$374.3 million) investment from SanDisk to build a flash memory manufacturing plant in Batu Kawan.

Topics: Storage, Hardware, Malaysia

About

Eileen Yu began covering the IT industry when Asynchronous Transfer Mode was still hip and e-commerce was the new buzzword. Currently a freelance blogger and content specialist based in Singapore, she has over 15 years of industry experience with various publications including ZDNet, IDG, and Singapore Press Holdings. Eileen majored i... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.