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Lynas Corporation Ltd, which has made a direct capital investment of RM1.318 billion in its Lynas Advanced Materials Plant (LAMP) as of Sept 31, expects an incremental investment of approximately RM200 million.
In a statement today, the company said the incremental investment would be
from two material suppliers.
"Upstream to the rare earth processing at the LAMP in Gebeng, Pahang, the
plant already has two material suppliers already investing in building and
expanding their operations to supply to LAMP," Lynas said.
Of the RM1.318 billion capital investment, Lynas had invested RM618 million
in Malaysia under Phase One, of which RM235 million was awarded to Kuantan-based contractors.
The current investment enables an initial production capacity of 11,000T
Rare Earth Oxide (REO) per annum of separated Rare Earth products.
Under Phase Two, an additional RM700 million has been allocated for
expansion now underway. "Near to 50 per cent of this investment is spent in
Malaysia for subcontracting requirements and materials purchase while
approximately 40 per cent is for the purchase of equipment and technical
expertise offshore.
"Undertaken by lead contractor Toyo-Thai Corporation Public Limited, these
investments will gear up to an increased production capacity of 22,000T REO per annum," it said.
On human capital investments, the company said Lynas Malaysia Sdn Bhd's
current payroll already stood at RM26 million per annum. It said Lynas Malaysia is fully manned and managed by Malaysians except for
the four Rare Earth operations experts from China, and the LAMP creates over 35 skilled permanent jobs.
Apart from Lynas' direct investment, the LAMP would create up to an
additional 500 indirect jobs for service providers and contractors, the company
said.
It added that as the first new rare earth supplier outside China, the LAMP
could position Malaysia as the destination of choice for associated
manufacturers of high technology products looking for a base for their
manufacturing operations. -- Bernama
Read more: Lynas sees RM200m incremental investment http://www.btimes.com.my/Current_Ne...111012181247/Article/index_html#ixzz1ae65MlfZ