Port of Tanjung Pelepas pulls off another coup

Port of Tanjung Pelepas (PTP) has secured another major lease at its free trade zone in Johor. JST Manufacturing Co of Japan has agreed to develop a 1 million sq ft facility, with the move-in expected in August 2006.

JST, through its Malaysian subsidiary JST Connectors (Malaysia) Sdn Bhd, will be developing a 1 million sq ft integrated facility for production, engineering, research and development, training and sales at Phase A of the Pelepas Free Zone.

Covering 12.74ha, it will be developed at an initial cost of US$100 million (US$1 = RM3.75) which will be increased to US$200 million over a 10-year period.

The new plant, which is to be the most advanced of its kind, will form part of JST’s long-term goal of becoming a global leader in electronics and electric connectors.

At the signing of the lease agreement on Thursday, PTP was represented by its chief executive officer Datuk Mohd Sidik Shaik Osman, while JST chairman Miyoko Nishimoto signed on behalf of the Japanese company.

“We are beginning to see the start of an industry cluster for the electronics industry here in the Pelepas Free Zone which over time will have a significant impact on the local cargo volumes handled by the port,” said Mohd Sidik in a statement released in Kuala Lumpur yesterday.

He said JST’s decision to set up operations in Pelepas Free Zone will create new demand for specific services such as precision parts processing, plastic moulding and stamping contractors.

“This will have a positive effect on the overall development of south-west Johor and the Gelang Patah area specifically,” he added.

The latest development follows last month’s signing in Johor between PTP and Singapore-based contract manufacturing giant Flextronics International Ltd, which will see the port building and leasing a 1.2 million sq ft integrated industrial campus at its free trade zone to the company for 10 years.

Meanwhile, a spokesman for JST said factors that contributed to the company’s decision to locate to the Pelepas Free Zone included the lower overall costs of business, logistics facilitation especially with its Singapore and Indonesia operations as well as the extensive and effective distribution network available through PTP to reach out to its global market.

Incentives offered by the Malaysian Industrial Development Authority and the political stability of Malaysia were also deciding factors.

Established in 1957 in Osaka, Japan, JST is one of the world’s largest manufacturers of connectors for use in cars, office automation, telecommunication and consumer equipment, among other things.

With annual global sales of more than US$1 billion and a global workforce of over 6,000, JST is a key supplier to the leading companies and multinational corporations in the electronics, telecommunications and automotive industries.