Kota Kinabalu: South Korean company SK Nexilis Malaysia marked a significant milestone with the first shipment of copper foil from its plant, here, Monday.
Its plant in the Kota Kinabalu Industrial Park (KKIP) is the company’s first overseas production base and the world’s biggest copper foil manufacturing factory.
SK Nexilis produces 15 per cent of global copper foil for electric vehicle (EV) batteries.
Officiating the shipment, State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said the achievement was momentous for Sabah.
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Upon full operation, its RM2.3 billion facility in KKIP will have an annual production capacity of 57,000 tonnes, with a RM2.8 billion export value.
“This achievement is meaningful for Sabah. Finally, we have a big capacity to export,” said Phoong.
“This is the stepping stone to turn Sabah into an industrial and export-based State.”
Phoong said the raw materials used in the production were sourced worldwide.
“In the next step, the company will bring in its subsidiary for extra RM300 million investment to maximise the capacity and competency of raw material processing,” he said.
He reiterated that the State’s economy can only be progressive and modernised if it has high-value industries that produce high-quality human capital.
“The Ministry is committed to ensuring SK Nexilis’ investment will always be successful as the company’s success is equivalent to the success of Sabah and Malaysia.
“The Ministry intends to bring more high-value investments to Sabah so that it can leapfrog to a high-technology state.
“This is also to reverse brain drain so local youths can return to Sabah to work.
“At the moment, I was made to understand that the plant has created 380 jobs – 90 per cent Malaysians and 58 per cent Sabahans.
“This is already a remarkable achievement even though they have only started operations about one or two months ago. They are committed to increasing the number of Sabahans working at the factory,” he said.
On claims of workers not being paid by SK Nexilis’ contractors, Phoong said he was unaware of it.
“I am not aware but if it exists, I am confident SK Nexilis will handle well.
“The Ministry is in constant communication with the company. My Ministry will always facilitate on issues about workers’ welfare. We are striving for industrial development, but not at the expense of the workers’ rights.”
SK Nexilis Malaysia Chief Executive Officer Shin Dong Hwan said despite significant challenges, the Government has demonstrated firm support and commitment to address the critical issue of water supply disruption to the factory.
“We hope to witness an immediate resolution of this issue so that we can resume our copper foil production without any further disruptions.
“We trust that the Government will continue to prioritise this matter, and we are grateful for their support,” he said.
He also said although the project started during the Covid-19 pandemic, they managed to achieve “an important stage of production, which is the first shipment that is expected to be shipped out soon.”
“North American, European and Asian countries are among the future importing countries for copper foil from SK Nexilis Malaysia.
“Most importantly, this achievement will simultaneously contribute to the growth of Sabah’s economy, particularly in attracting and increasing the number of foreign investors to select Sabah as the main destination for international investments,” he said.
Also present was South Korean Consulate-General Joo Joonh Chul.
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