Ferrotec invests USD 226m in Malaysian plant expansion

Ferrotec Holdings Corporation (TSE: 6890) announced a capital investment of USD 226.4 million (approximately JPY 33.3 billion) for the construction of a second factory at its Malaysian subsidiary, FTMM, located in northern Malaysia. The investment, approved by the board of directors today, aims to address growing demand, particularly from key Western customers seeking production capabilities outside of China. The new facility will focus on manufacturing quartz, ceramics, and providing metal contract processing services. The project includes approximately USD 103.2 million for factory construction and USD 123.2 million for machinery and equipment. Construction is slated to begin in April 2025, with operations expected to commence in September 2026. FTMM, established in 2022, has been successfully meeting customer needs since starting production in January 2024, but current capacity is deemed insufficient to meet anticipated demand beyond 2026. The company is a 100% owned subsidiary of Ferrotec (USA) Corporation (FTU).