KUALA LUMPUR (May 22): EG Industries Bhd has joined forces with Yamaha Motor Co Ltd to set up 5G automated intelligent surface mount technology (SMT) production lines for the group's upcoming smart lights-out manufacturing plant in Batu Kawan, Penang.

EG Industries is expected to invest up to RM80 million in phases over two years for the implementation and commissioning of the lines, said the electronic manufacturing services provider in a statement.

It noted that Yamaha has established a track record of implementing line automation for lights-out manufacturing in its own manufacturing plants in Japan as well as other renowned manufacturers in Southeast Asia. The lights-out method involves a complete networked environment that digitises material flow for autonomous manufacturing using 5G connectivity modules.

"The partnership arrangement would be Yamaha’s first undertaking in Malaysia," said EG Industries. "With their vast experience and technical capabilities, Yamaha would be amply positioned to support EG Industries to implement the lights-out manufacturing using EG’s state-of-the-art 5G modules." 

The manufacturing plant in Batu Kawan is expected to commence in the first half of 2024, and will complement the group’s existing facilities in Sungai Petani, Kedah.

"Slated to be the group’s first fully-automated lights-out smart factory 4.0 with a built-up area of more than 22,500 sq metres for production floor area, office building and warehousing capacity, it is expected to increase EG Industries’ total built-up area of its production, warehousing and offices, including its facilities in Sg Petani, by 45% from 55,000 to 80,000 sq metres," the group said.

“By deploying an integrated platform utilising Yamaha’s technologies, we will be able to implement non-stop, no-defect and operator-free production processes,” added EG Industries group chief executive officer Datuk Alex Kang.

EG Industries’ share price closed six sen or 4.92% lower at RM1.16 on Monday (May 22), valuing the group at RM500.97 million.