1. Building automated equipment systems is akin to the assembly and production of vehicles. Visitors to automotive manufacturing plants would have observed that they usually operate in industrial clusters — the better to attract customers, precision engineering firms and material suppliers. Likewise for technology equipment manufacturers and automation houses, as they would require high-precision metal fabrication components, modules and systems to build their products.
2. More than four years ago, three tech-savvy manufacturers — ViTrox Corp Bhd, Pentamaster Corp Bhd and Walta Engineering Sdn Bhd — conceived the idea to build a world-class fabrication cluster at Batu Kawan Industrial Park in Penang that would serve as a one-stop metal component supply chain hub.
3. The result was Penang Automation Cluster Sdn Bhd (PAC), formed in January 2017 with the mission of enhancing the local ecosystem and uplifting the capabilities of local small and medium enterprises (SMEs).
4. The cluster’s open and transparent approach to knowledge transfer, as well as business support from shareholders, are key to elevating SMEs at the industrial park. The main goal is to build and manage the local supply chain to support large local companies (LLCs) and multinational corporations (MNCs). Aiming to support and fund the cluster’s development,
5. Basically, clusters are geographic concentrations of interconnected companies and institutions in a particular field, and they usually encompass an array of linked industries and other entities important to competition.
6. Silicon Valley and Hollywood are arguably the world’s best-known clusters. Others of note are the California Wine Cluster, the Italian leather fashion cluster, and the financial hubs of London and Hong Kong.
7. PAC’s main task was to visit as many precision machining and metal fabrication SMEs as possible to share the concept of an automation cluster, prior to its commencement of operations in October 2019. Another important task was to get the design and construction of cluster buildings up and running by appointing the engineers and main contractor.
8. PAC has 17 industrial lots designed mainly for precision machining, including two larger units that are dedicated to computer numerical control (CNC) double column and sheet metal fabrication.
9. Together with the seven SMEs, it commenced operations about two years ago, occupying the remaining 10 industrial lots. Unfortunately, an SME left the cluster a year later because of an issue with skilled labour.
10. The three original shareholders — ViTrox, Pentamaster and Walta Engineering — have been playing a key role in financial investments, whereas the fourth largest shareholder, Fong Chee Kong, serves as a technical adviser in the company’s day-to-day operations.
FACING LIMITATION AND CHALLENGES
1. PAC’s original concept was to centralise orders from ViTrox and Pentamaster at the cluster, and to subsequently distribute the orders to the SMEs. However, without pioneer status — coupled with sales and service tax issues — PAC is unable to execute the original plans at present.
2. now is that ViTrox and Pentamaster deal directly with the SMEs and PAC for orders, but PAC also serves as the management company to monitor and compile the sales statistics for submission to shareholders in order to ensure a fair share of orders for all SMEs.
3. When the cluster is mature enough to accept orders from MNCs or other external customers, in hopes that PAC will be able to deal directly with these clients and distribute the orders to the SMEs.
4. SMEs in the PAC cluster are receiving stable orders from the shareholders, as all orders from ViTrox and Pentamaster — whose manufacturing plants are in the vicinity of PAC — are prioritised by the cluster.
5. With the support of orders from ViTrox and Pentamaster, the cluster can focus on sourcing high-quality fabrication parts for the customers on a timely basis.
Source:
https://theedgemalaysia.com/article/tech-penang-automation-cluster-aims-build-local-supply-chain-and-elevate-sme-capabilities
