Phoong (right) listening to a briefing by the SK Nexilis management team on the manufacturing process technology of copper foil.
KOTA KINABALU: Sabah has secured another RM300mil investment from SK Group, the second-largest conglomerate in South Korea.
“This comes after SK Nexilis (as part of SK Group’s electric vehicle value chain) invested RM4.2bil to construct the world's largest copper foil manufacturing plant in Sabah (since 2021),” said state Industrial Development and Entrepreneurship Minister Phoong Jin Zhe here on Friday (July 28).
He said he had engaged in discussions with SK Group during his official visit to South Korea earlier this month.
“Following the discussions, SK Group has committed to an additional investment of RM300mil.
“This additional investment will be utilised to optimise copper raw material with modern technology, thereby, increasing copper foil production.
“This strategic move aims to further develop the battery industry chain and stimulate the growth of the electric vehicle industry in Sabah,” Phoong added.
He described the visit to South Korea as “fruitful”, adding this was part of the potential investments amounting to RM3.4bil the state managed to attract during the visit.
“The investments are aimed at establishing the electric vehicle (EV) and battery industry chain in the state, envisioning the establishment of high-impact industries, creating quality employment opportunities and paving the way for Sabah's industrialisation,” he said.
On his South Korea’s trip, Phoong said his first visit was to the SK Nexilis copper foil factory in the city of Jeongeup-si, where he was received by the company’s president Yi Jae Hong.
He said this factory's successful replication at the Kota Kinabalu Industrial Park (KKIP) here will mark SK Nexilis' first overseas investment.
“Furthermore, the copper foil plant in Sabah will showcase the latest and most advanced manufacturing technology, creating 500 high-quality, well-paying and technologically advanced job opportunities in Sabah,” he said.
At the same time, he added the copper foil manufacturing plant in KKIP was set to commence production by year-end.
He noted that SK Nexilis has already completed their first product inspection in the state, laying the foundation for full-scale production.
While copper foil is an indispensable component in electric vehicle batteries, Phoong said, it however represented only one part of the electric vehicle industry ecosystem.
He said he was actively engaging in discussions with SK Group to encourage further investment, with the aim of establishing a high-paying electric vehicle industry chain in Sabah.
The electric vehicle industry, he said, was poised to become the next automotive revolution, gradually replacing conventional automobiles.
Phoong said he had met with senior executives from BK Energy and G-Philos in Seoul, with both companies expressing their interests in initiating the first hydrogen energy project in Sabah.
He said he and his delegation also held meetings with representatives from the Busan Port Authority and senior executives from Dongnam Circulator Centre.
“They discussed the company's plan to invest RM40mil in establishing a logistics hub at the Palm Oil Industrial Cluster (POIC) Lahad Datu.
“Dongnam Circulator Centre has already completed the lease agreement with POIC Lahad Datu.
Now, the focus is on actively following through with all the necessary procedures to ensure the swift implementation of this investment,” Phoong said.
