9APRIL, 2025ASIAMANUFACTURINGREVIEW.COMLAOS PARTNERS WITH CHINESE FIRM FOR $1.45 BILLION GREEN ENERGY PROJECTHOTAYI ELECTRONIC EXPANDS SMART FACTORY IN MALAYSIA WITH $113M INVESTMENTLaos has signed a $1.45 billion clean energy deal with a Chinese power equipment maker in its continued quest to increase clean power generation and transmission.China Western Power Industrial, with a Singaporean contractor, signed an agreement with the Xekong Thermal Power Plant of Laos to design, supply, and construct a 1,800-megawatt clean power project in southern Laos, as noted in a Monday filing by the Sichuan-based company to the stock exchange.The project will be completed by early 2030, and initial design blueprints are supposed to be complete by the end of this year. The filing, however, did not identify the source of the energy for the new power plant.Also on the same day, China Western Power obtained a $228.8 million power transmission project contract with the same Laotian firm.This transaction comes after a $409 million power and service deal the company entered into in 2022 with another power company in Laos. Also, in the previous year, a Chinese state-owned power firm signed a deal to increase a wind and solar power base in northern Laos.Laos, a mountainous country, has gotten about 80 percent of its electricity supply during the last ten years from hydropower but has struggled to increase solar and wind power. Exports of electricity, which go mainly to neighbouring Thailand and Vietnam, are still a major component of the economic plan for Laos and earned it the reputation of "the battery of Southeast Asia." Taiwanese electronics manufacturing services provider Hotayi Electronic (M) Sdn. Bhd. has commenced construction on a MYR 500 million ($113 million) expansion of its smart factory in Malaysia. In a statement released on Friday, the company announced the initiation of its Phase 3 expansion in Batu Kawan, Penang. This investment will establish a state-of-the-art smart manufacturing facility covering 380,000 square feet and is expected to create 1,000 new high-skilled jobs in the area."By integrating cutting-edge smart factory technologies, we aim to enhance quality, efficiency, innovation and sustainability while supporting our customers' evolving needs," said Goh Guek Eng, Chief Executive Officer of Hotayi Electronic.The expansion will incorporate cutting-edge automation, analytics powered by AI systems, and processes enabled by the Internet of Things (IoT), further solidifying Hotayi's position as a leader in manufacturing Productivity. This investment is in line with Malaysia's New Industrial Master Plan 2030, which emphasizes technological progress and the development of local talent. Since its inception, Hotayi has played a significant role in Malaysia's electronics sector, consistently investing in infrastructure and workforce to cater to global clients. The recent expansion also demonstrates the company's trust in Malaysia as a vital manufacturing center, as stated in the announcement."This expansion not only drives innovation and smart manufacturing but also strengthens the broader industrial ecosystem, supporting a more resilient and efficient supply chain," said Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA).
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