A new Magneti Marelli Automotive Lighting plant for the production of headlamps and rear lights for the automotive sector has been inaugurated in Batu Kawan, in the Malaysian state of Penang.
The plant was built to replace the facilities in Bayan Lepas, with a significant increase in the production capacity, which will go from 1.7 million lighting units per year to 2.2 million components, with a potential further increase up to 2.9 million units per year. The production plant was also equipped with cutting-edge machinery and production technologies that guarantee the highest technical-qualitative standards, capable of satisfying the needs of “premium” automotive segment.
Go deeper with GlobalData
The new facilities cover a total surface area of 56,600 square meters, 26,600 of which are dedicated to production, with an actual workforce of 1000 employees, that could possibly grow of a 50% more, in relation to the gradual increase of the production capacity.
In the recent evolution dynamics and in the shifting of weights between the various areas of the global automotive market, the ASEAN market is becoming increasingly important both in terms of internal dimensions and as a production hub aimed at the entire Asian continent, Japan in particular.
As a whole, the ASEAN (Association of South East Asian Nations) market consists of ten countries (Thailand, Indonesia, Malaysia, the Philippines, Singapore, Brunei, Vietnam, Laos, Myanmar and Cambodia), it has approximately 600 million inhabitants (2011 estimates, source: ASEAN Economic Community Chartbook 2012) and covers an area of about 4.5 million square km, with a GDP of more than 2200 billion dollars (2011 estimates, source: ASEAN Economic Community Chartbook 2012). Taking into account Indonesia, Thailand and Malaysia alone, the volume of the automobile market for new registrations has reached about 3 million vehicles in 2012, while the circulating fleet is amounts to over 38 million vehicles.
In this strategic scenario, the strengthening of Magneti Marelli Automotive Lighting industrial presence in Malaysia is aimed at satisfying the needs of customers living in the same ASEAN area and on the Japanese market, with potential prospects of an average annual growth of 15% in the next five years for lighting-related business in Malaysia.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn particular, the Malaysian plant of Batu Kawan will be producing front headlamps, rear lights and fog lamps, also introducing LED technology. Production will be aimed at the Japanese carmakers (Honda, Mazda and Suzuki) and at carmakers belonging to the ASEAN area (Proton & Perodua in Malaysia, Ford and GM in Thailand and Indonesia).
“In the changed scenarios of the global automotive market – stated Eugenio Razelli, Magneti Marelli’s C.E.O. – a very interesting production and market entity such as the ASEAN area is gaining strength next to China and India. By inaugurating this new industrial facility in Malaysia, Magneti Marelli proves that it is ready to seize the market opportunities of an extremely dynamic context, and to increase its own production and technological capacity in areas with a high growth rate, confirming, in the lighting area as well as in other areas, a significant strategic presence on the entire Asian continent “.
