LEM expands global footprint with RM79m factory in Penang

In a significant stride towards sustainable manufacturing and technological advancement, LEM, a leading electrical measurement technology specialist, has unveiled its new €15.7 (RM79) million state-of-the-art factory in Penang, Malaysia. Combining eco-friendly design with cutting-edge manufacturing technology, the facility marks a substantial investment in the region’s burgeoning semiconductor industry.

Driven by the escalating global demand for its core products, current and voltage sensors, LEM’s decision to establish this advanced manufacturing hub underscores its commitment to meeting evolving market needs. The imperative for decarbonization across various sectors such as mobility, industry, and energy production has amplified the necessity for LEM’s innovative solutions, spanning automation, automotive, traction, and renewable energy industries.

Selecting Penang as the site for this significant investment reflects LEM’s recognition of the region’s prowess in semiconductor production. With an initial workforce of around 70 employees in April 2024, LEM anticipates a substantial expansion, aiming to employ over 200 individuals by March 2025 and eventually exceeding 500. Sales projections from the factory are expected to surpass €200 million, attesting to the company’s ambitious growth trajectory.

State-of-the-Art facility sets industry standard

Spanning 11,800 square meters and equipped with state-of-the-art logistics systems, including automatic guided vehicles (AGVs), the factory exemplifies LEM’s commitment to operational efficiency and technological innovation. Additionally, the facility serves as a pilot for the implementation of a new Enterprise Resource Planning (ERP) system, further enhancing production processes.

Mr. Chow Kon Yeow, Chief Minister of Penang, expressed his delight at LEM’s investment, emphasizing the region’s robust supply chain resilience and skilled workforce. He remarked, “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 but also in the acknowledged expertise of our people.”

The Malaysian Investment Development Authority (MIDA) echoed this sentiment, lauding LEM’s integration of advanced manufacturing technologies and sustainable initiatives. Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, highlighted the significance of LEM’s investment in advancing Malaysia’s manufacturing capabilities and fostering sustainable development in line with national economic policies.

Factory pioneers advanced manufacturing systems

LEM CEO Frank Rehfeld emphasized the importance of investing in state-of-the-art facilities to meet the demands of rapidly evolving markets. “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.” he stated, underlining the company’s commitment to operational excellence and customer satisfaction.

Andreas Hürlimann, Chairman of the Board of Directors at LEM, expressed optimism about the new facility’s impact on the company’s integrated current sensing business. He underscored the importance of adhering to sustainable practices, noting the facility’s compliance with Malaysia’s Green Building Index (GBI) and its contribution to LEM’s CO2 roadmap.

With its inauguration, LEM’s state-of-the-art factory in Penang stands as a testament to the company’s dedication to innovation, sustainability, and economic advancement in Malaysia and beyond.