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The Capacity to Serve
Friday, January 27, 2017

The new facility will aid MHE-Demag in strengthening crane manufacturing operations in South East Asia


MHE-Demag has opened a S$15.5 million (US$11 million) state-of-the-art manufacturing and warehouse facility in Bukit Raja, Malaysia.This is the largest manufacturing facility of its kind in South East Asia, cementing MHE-Demag’s leadership position. 


An exclusive launch ceremony was held on November 29, providing customers, partners and members of the media with a guided tour of the facility. The facility can operate at a capacity of 200,000 production hours a year, a 54% increase from the previous site. The facility is also expected to support the fabricated metal products and machinery & equipment industries in Malaysia – two key areas that have been identified as drivers for the manufacturing sector to attain its projected growth of 5.1% per annum. 


With a built-up area of close to 15,000 square metres, the plant is also the first of its kind crane manufacturing facility in Malaysia and the region. Capable of building cranes of up to 50-metre span, the plant primarily serves customers from Malaysia, Australia, Cambodia, Myanmar and Singapore, across industrial sectors where lifting, moving and maintenance of materials or machineries are required. 


Karl Tilkorn, Regional Managing Director, MHE-Demag, said, “This investment cements MHE-Demag’s commitment to Malaysia over the past 40 years, and is an important step forward for us. It is the largest and most modern of our 11 manufacturing facilities across the South East Asian region. Each industrial crane needs to be individually designed and custom fabricated, hence the large production facility along with state-of-the-art equipment will allow us to maintain our leadership position to meet the high standards required by our growing customer portfolio, particularly with the prestigious projects we have secured” 


The facility will also host MHE-Demag’s Regional Training Centre, where employees and customers throughout the Group will attend skills training and upgrading programmes to ensure excellence in operations, maintenance and safety for industrial cranes is maintained. Adding on, Mr Tilkorn said, “Human resource development is a key component of the MHE-Demag quality culture. The drive to attain environmental, health and safety (EHS) excellence is ingrained in our business ethics and we continuously work towards extending this mind-set to our suppliers and vendors as well.”


The factory has also been built in reference to the Malaysian Green Building Index, incorporating the most environmentally friendly solutions. According to Frankie Chan, Managing Director of MHE-Demag Malaysia, much focus has been placed on creating conducive work areas that have a low impact on the environment. “This includes building for natural ventilation and employee well-being — from  utilising translucent panels to allow for extensive natural light to investing in ergonomic workstations. The construction process was also personally managed by our Regional Director, Joergen Moeller, from design to final stage. I strongly believe the new factory will enhance employee comfort and increase their motivation, leading to greater customer satisfaction.” 


Easily accessible via the North Klang Valley Expressway, Federal Highway, the New North Klang Straits Bypass and the new proposed Coastal Highway, the Bukit Raja manufacturing facility also connects to major ports such as Port Klang, Northport and West Port within 30 minutes



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