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Electrical measurement technology specialist LEM has inaugurated a new €15.7m ($17m) state-of-the-art factory in Malaysia that combines environment-friendly design with advanced manufacturing technology.

Setting up this new factory reflects LEM’s growth plan which is driven by increasing global demand for the company’s core products, current and voltage sensors. The need for decarbonization in mobility, industry, energy production, as well as our private lives has led to an increased need for our products across all sectors where LEM’s products are used, including automation, automotive, traction, and renewable energy.

LEM chose to make such a substantial investment in the state of Penang in recognition of the region’s expertise in semiconductor production.

From employing around 70 people in April 2024, LEM expects to increase the Headcount to more than 200 people by March 2025 and eventually more than 500, with sales from the factory expected to reach over €200m. With plans in place already for an extension on the additional 5,000 sqm of land, the new 11,800 sqm factory features a state-of-the-art logistic system including automatic guided vehicles (AGVs) on the shopfloor which transport components from the warehouse to the high-tech production lines. LEM Malaysia is also the pilot for the roll-out of our new ERP system and will produce a substantial part of its energy through solar panels.

Right Honourable Mr. Chow Kon Yeow, the Chief Minister of Penang, says: “We are delighted that such an internationally renowned company as LEM, with a reputation for dedication to quality, has chosen to invest not just in the region, which is renowned for its supply chain resilience and a well-developed ecosystem, but also in the acknowledged expertise of our people.”

Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of MIDA, comments LEM’s integration of advanced manufacturing technologies and sustainable initiatives in their new factory in Penang. He states, “Celebrating LEM’s cutting-edge factory inauguration in Malaysia is a testament to our nation’s allure as the preferred investment destination, highlighting our robust manufacturing capabilities and significant opportunities for technology transfer and talent development. This milestone not only propels Malaysia towards a more environmentally conscious future but also fosters collaborations driving technological innovation, economic prosperity, and sustainable development for Malaysia and beyond. Through the adoption of advanced manufacturing technologies and a sustainable approach, LEM’s initiative reflects Malaysia’s commitment to economic advancement, job creation, and ESG practices, aligning seamlessly with the New Industrial Master Plan 2023 and the National Energy Policy 2022-2040, as well as the MADANI Economy framework. Furthermore, we aspire to create conditions that make Malaysia an attractive place for businesses to invest and expand, reinforcing our commitment to fostering such transformative collaborations.”

According to LEM CEO Frank Rehfeld, it is vital that the company continues to invest in state-of-the-art facilities where it can manufacture world-leading products for a range of rapidly developing markets.

He says: “We are always looking to find solutions that will secure our operations while diversifying our global footprint. The new Penang factory is the latest venture in this quest. It is essential in uncertain times that LEM looks to increase its resilience and serve our customers better. We will achieve this by investing in advanced production facilities and personnel capable of manufacturing the best products designed to meet the demands of this growing sector.”

Andreas Hürlimann, LEM chairman of the Board of Directors, adds: “I’m very optimistic that having a state-of-the-art facility in this region with the ability to test our own semiconductors will be a major boost for our integrated current sensing business.”

He continues: “It was vital when we commissioned this new factory that it complied with the Green Building Index (GBI), Malaysia’s industry-recognized green rating tool for buildings. With 300kW of solar energy systems already installed and another 400kW scheduled for 2026, the building also uses rainwater harvesting and building automation to optimize energy consumption. This new factory is proof of LEM’s commitment to its CO2 roadmap which is part of a long-term vision to help customers and society in general transition towards a more sustainable future.”

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Source: LEM