Statement re £70m+ expansion in Malaysia
Weir Group announces £70m+ expansion in Malaysia.
The Weir Group PLC (Weir) is pleased to announce a major expansion of its operations in Malaysia.
The announcement was made following a meeting between the UK Prime Minister, David Cameron, the Malaysian Prime Minister, Datuk Seri Najib Tun Razak and Weir Group Chief Executive Keith Cochrane.
It is one of the largest engineering investments in Malaysia by a UK company. Weir chose to invest in Malaysia in recognition of the country's strategic importance, skilled workforce and supportive business environment.
The expansion will see Weir's workforce in Malaysia more than double from 400 to over 1,000 and is part of its strategy of increasing capacity in the fast growing Asia-Pacific region, supporting the group's global needs.
The foundry and machine shop will expand the production of high quality castings sourced at best cost, while the rubber line will increase Weir's ability to supply the growing demand for Linatex products.
Linatex is a 95% natural rubber product used in the mining industry which exhibits outstanding resilience, strength and resistance to cutting, tearing and abrasion.
The new campus will be built on a 55 acre site with the new foundry capable of producing 6,000 tonnes with the potential to expand capacity up to 12,000 tonnes as demand increases.
This investment will support Weir's growing operations including its valve manufacturing facility in Elland, West Yorkshire. Over the course of 2013, Elland will double production levels to cope with increasing demand from its global customers.
Prime Minister David Cameron said, "This is yet another sign of a UK company winning in the global race. The Weir Group are a fine example of Scottish engineering excellence and their expansion highlights the crucial role it plays around the world."
Weir Group PLC Chief Executive, Keith Cochrane said, "This represents an important step in the development of our global supply chain capability and builds on the success of our 2010 acquisition of Malaysia-based Linatex. Since then, production has more than doubled.
"This investment, which is the largest made by a UK company in the last five years, builds on that success. Throughout our time in Malaysia, Weir has been impressed by the quality of trained staff, technical support and the reliability of source materials. This expansion demonstrates our confidence in Malaysia as a long term source of high quality products for our customers around the world.
"I'd like to thank the government of Malaysia and UK Trade International for their assistance and support in facilitating this investment."
About The Weir Group PLC
Weir was founded in 1871 and has grown to become a global provider of engineering solutions to the minerals, oil and gas and power sectors.
Our commitment to engineering excellence, research and customer focus extends equipment wear life and operational capability in some of the world's most challenging environments.
Weir is committed to going where our customers go, with a worldwide network of more than 140 manufacturing facilities and service centres.
Our customer base includes the world's largest mining houses, major oil services businesses and nuclear and conventional power generation companies.
| Contact details: The Weir Group PLC | |
| Andrew Neilson, Head of Group Corporate Affairs & Strategy | Tel: + 44 141 308 3750 |
| Raymond Buchanan, Group Communications | Tel: + 44 141 308 3781/ + 44 7713 789536 |
| Brunswick Group | Tel: + 44 207 404 5959 |
| Patrick Handley/Nina Coad |
[1] 28th October 2013 Exchange rate £1=$1.617
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: The Weir Group PLC via Thomson Reuters ONE
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