To open up the Southeast Asian market, Leuze founded its own subsidiary in China in 2006 and another in Singapore in 2015. Now another international production site is being built in Melaka, Malaysia, due to the high demand from the Asian markets along the new Silk Road.
"The construction of a new plant in Malaysia, Southeast Asia, is a strategically important building block in our global growth strategy," explains Matthias Höhl, Vice President Asia at Leuze. "Asia is a fast-growing market in the electronics sector and still promises a lot of untapped potential. For example, in the field of laboratory automation, one of our focus industries," he continues, explaining the reasons for this step.

The new production site operates under the name Leuze electronic assembly Malaysia Sdn. Bhd. and is a 100% subsidiary of Leuze electronic. It will be built on a site area of over 17,000 square meters. Completion is planned for the first quarter of 2022. In the first expansion phase, around 4,500 square meters will be built for production and warehouse logistics areas and 1,000 square meters for administrative areas. The total floor space will be just under 7,000 square meters - of which around 2,000 square meters will be production space. There is growth potential for doubling this in a second construction phase. After the first expansion phase, up to 200 new employees will be working at the plant in Melaka.

The new production site will further expand Leuze's continental structure in Asia. "By producing our sensor solutions at several locations worldwide, we can optimize our logistics flows and further improve our delivery capability," says Jochen Wimmer, COO of the Leuze-electronic Group. Production already takes place in Germany, the USA, Brazil and China. In Melaka, Leuze will primarily manufacture sensors for the local Asian market. "A multi-site production strategy helps to optimize our manufacturing strategy worldwide. For example - as is currently the case during the coronavirus pandemic - relocations and compensations are possible, which have a positive impact on our global ability to act and deliver to our international customers. This enables us to significantly minimize risks," explains Wimmer.