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Cheaper Electricity Woos Investors To Samalaju Industrial Park

  • Wednesday, November 18, 2015
  • Source:ferro-alloys.com

  • Keywords:SiMn Silicon Manganese
[Fellow]Competitive packages, in particular cheaper electricity, are the main pull factor attracting anchor investors to the Samalaju Industrial Park (SIP) located about 62km from Bintulu Central Business District.

Competitive packages, in particular cheaper electricity, are the main pull factor attracting anchor investors to the Samalaju Industrial Park (SIP) located about 62km from Bintulu Central Business District.

These investors have expressed confidence in the sustainable renewable energy sources from the Bakun and Murum hydroelectricity power plants.

With its 8,000-hectare site (the size of Manhattan City), SIP is set to receive more investors, particularly foreign anchor investors, to realise its aim of becoming one of Southeast Asia's most hi-tech industrial parks.

SIP, accessible via the Bintulu-Miri coastal road and the Pan Borneo Highway, was established to locate heavy and energy-intensive industries away from Bintulu town.

It is also served by the Samalaju Deep Sea Port, while coming up are an eco-park, new township, housing projects and other facilities.

Five companies are already there -- Tokuyama Corp of Japan, Press Metal Bhd of Malaysia, OM Materials Ltd (OMH) of Singapore, Permata Ferroalloys of Hong Kong and Sakura Ferroalloys of South Africa/Japan.

Tokuyama is involved in the production of polycrystalline silicon, Press Metal (aluminium ingots and billets), Permata Ferroalloys (slicon manganese), Om Materials (ferro manganese) and Sakura Feroalloys (ferro silicon manganese).

Permata Ferroallys public affairs advisor Andrew Talling said before deciding to invest in SIP they actually went to several other countries but ended up at SIP because of the cheaper power cost.

"Here in Samalaju we can predict that the power supply is sustainable and we can also know our future cost," he told reporters on a media visit to SIP yesterday.

He said the other factors were the strategic location of the industrial park as well as its facilities including the Samalaju Deep Sea Port expected to be fully completed next year.

"These elements combined with the attractive packages and easy accessibility to the relevant authorities convinced us to come here," he added.

Meanwhile Press Metal Group chief executive officer Datuk Paul PK Koon said the company decided to have its second factory in SIP because of the availability of local resources and renewable energy.

"With good government support and the relevant agencies our company's operations in SIP have been progressing very fast for the past few years," he added.

The proximity to Bintulu makes it easy to export to countries like Japan, South Korea and Southeast Asia, he said, adding the company has been in the Sarawak Corridor of Renewable Energy (SCORE) since 2008 with its first factory in Mukah, and has invested more than RM5 billion.

Tokuyama Malaysia vice president Haruyoshi Honda said besides the strategic location and competitive energy rates, the company also received good support from the state government.

Om Materials (Sarawak) director Edward Young said before deciding on SIP, they went to Indonesia but found the infrastructure there unsatisfactory.

  • [Editor:Sophie]

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