Weir Targets Emerging Markets in $112 Million Malaysia ExpansionNatasha Doff
Weir Group Plc, the U.K.’s biggest supplier of pressure pumps, will invest 70 million pounds ($112 million) on new plants in Malaysia as part of its strategy to expand into emerging markets.
The three-year project to build a campus to the south east of Kuala Lumpur will expand Weir’s production of high quality castings and Linatex, a resilient natural rubber product used in the mining industry, the company said in a statement after the London market closed yesterday.
“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,” Weir Chief Executive Officer Keith Cochrane said. “Since then, production has more than doubled.”
Weir is seeking to increase capacity in the Asia-Pacific region to widen its supply chain and offset slow economic growth at home. The region contributed about 20 percent of the Glasgow, Scotland-based company’s revenue in 2012, compared with about 12 percent from Europe.
The new campus, which will include a foundry, a machine shop and a second Linatex continuous rubber processing plant, will be built on a 55 acre site and have the capacity to produce 6,000 tons. The investment will support Weir’s valve manufacturing facility in Elland, West Yorkshire, which is expected to double production in 2013, the company said.
The project was announced during a meeting between Cochrane, U.K. Prime Minister David Cameron and Malaysian Prime Minister Najib Razak.