The health of the local semiconductor, electrical and electronics, and automation ecosystem is a vital factor in long-term sustainable growth for ViTrox and the country. Precision metal fabrication is an essential part of the automation ecosystem, where fabricated metal components are mission-critical to automation machines. Therefore, ViTrox and other parties jointly established an associate company, Penang Automation Cluster Sdn. Bhd. (“PAC”) in January 2017 and commenced its operations in October 2019.
There are 3 key objectives in setting up PAC:-
PAC is a gated facility with a total of 17 industry lots fully occupied as of 31 December 2023. The whole cluster currently provides 311 career opportunities, and more will be employed in the near future, targeting 350 and more workforces. The core competency of PAC is manufacturing high-precision metal fabrication components, modules and systems. PAC specialises in precision tooling, computer numerical control (“CNC”) machining centres, sheet metal, structural fabrication and metal surface treatment.
With the existence of the PAC ecosystem, ViTrox worked with all SMEs in the cluster to shorten the fabrication lead time by implementing the VJIT programme. Besides, any rework tasks from ViTrox can now be supported and expedited by PAC. From a product quality perspective, PAC helps to reduce ViTrox’s incoming quality assurance (“IQA”) workload and resources with its outgoing quality assurance (“OQA”) services and Ship-to-Stock (“STS”) programmes. This has indirectly improved the lead time for manufacturing use at the customer end.
PAC can also support ViTrox for any special inspection requirement using our coordinate measuring machine (“CMM”) machines with a maximum size of 3mLx1.5mW. From 2019 to 2023, PAC possessed 71 machines comprising electrical discharge machining (“EDM”) and CNC for machining and sheet metal operations. The entire PAC cluster has the strength of approximately 160 machines currently. Design development is one of PAC’s key expertise, where they can work closely with ViTrox’s R&D team for design improvement, which indirectly helps to save lead time and costs.
The SME cluster aims to enhance local SME capabilities to meet world-class standards, supporting the higher value chain ecosystem championed by LLCs and MNCs. PAC’s collaborative efforts play a pivotal role in attracting high-impact foreign direct investment and fostering long-term economic growth across various technology sectors and industries in Penang and Malaysia, particularly in semiconductors, electronics, aerospace, medical devices and automation.
There are 5 key aspects through which SMEs benefited from joining the PAC cluster.
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Entrepreneurship Opportunities |
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Sales |
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In the metal components supply industry, sustainability poses a significant challenge, particularly in responsibly managing waste and pollution generated by business operations. PAC has taken a proactive stance in addressing these challenges by committing to strict controls on wastewater and air pollution resulting from its operations. Below are some ESG practices implemented in PAC.
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Air pollution control
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Noise monitoring
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Sustainable supply chain resilience
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Wastewater management
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Collaboration with the Penang Green Council (“PGC”)
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Community engagement
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Employee welfare programme
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Safety and health measures
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Core values
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Engagement with customers
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Governance framework
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With ISO 9001:2015 certification, PAC demonstrates a strong commitment to quality management systems. Customers trust in the consistency and high standards of products or services, leading to increased customer satisfaction and loyalty. PAC received testimonials and recognition from its stakeholders: “Customers prefer PAC because of the cleanliness of the production floor which is rare in comparison with others within the industry. Contributing to the environment does make business sense.”