SK Nexilis’ first copper foil shipment bodes well for Sabah’s ambitions, says Minister

KOTA KINABALU: Sabah is on the right track to becoming an export-based state after SK Nexilis Malaysia hit a landmark achievement with its first export of copper foil, says Phoong Jin Zhe.

“This is a momentous achievement for Sabah,” said the Industrial Development and Entrepreneurship Minister, when officiating at the inaugural shipment ceremony at SK Nexilis’ Kota Kinabalu Industrial Park (KKIP) plant on Monday (Oct 23).

For its first shipment, the South Korean copper foil producer for electric vehicles (EV) churned out 80 tonnes of copper foil, with an export value of RM1.9mil.

“Finally, we have a big capacity to export. This is the stepping stone to turn Sabah into an industrial and export-based state,” added Phoong.

SK Nexilis’ RM2.3bil plant in KKIP is the company’s first overseas production base, and the facility is poised to have an annual production capacity of 57,000 tonnes, with an estimated RM2.8bil export value once it commences full operation which is expected to be before year-end.

The company produces some 15% of the global copper foils for EV batteries.

Phoong said the subsequent step would involve SK Nexilis bringing in its subsidiary and at the same time pumping in another RM300mil worth of investment.

“This is to maximise the capacity and competency of raw material processing,” he said, adding the raw material used in the production were sourced from all over the world.

He added the state government through his Ministry was committed to ensure the investment pumped by SK Nexilis will bear fruit.

“This is because the company’s success will mean success for Sabah and Malaysia as well,” he said.

Sabah’s economy, he added, can only be modernised and be progressive if the state possessed high-value industries that could in turn create high-quality human capital.

Phoong said the state was equally determined to attract other high-value investments to Sabah.

He said this would entice Sabahans, particularly the younger generation, to return to work in the state, adding this would reverse the brain drain.

“At the moment, I was made to understand the plant has created 380 jobs, of which 90% comprised Malaysians and 58% of them are Sabahans,” said Phoong.

“This is already a remarkable achievement even though they have only started operations some one to two months ago. The company is committed to increasing the number of Sabahans working in the factory,” he added.

Meanwhile, SK Nexilis Malaysia chief executive officer Shin Dong Hwan said the state government has proven its commitment to address the water supply disruption to their factory.

“We trust this will be the priority for the government and we are grateful for their support,” he said.

“We hope to see an immediate resolution of this issue so that we can resume our copper foil production without any further disruptions,” added Shin.

South Korea consulate-general Joo Joonh Chul was also present at the event.