GEORGE TOWN, May 14 — Penang announced today a RM1 billion re-investment by multinational company, Jabil Circuit Inc, which will be spread out over the next five years.

The investment by the global product solutions giant will see the setting up of a new manufacturing facility in Batu Kawan on the mainland here.

Penang Chief Minister Lim Guan Eng said the investment will also see the creation of 2,500 skilled jobs over the next five years.

Jabil Circuit signed an agreement with Penang Development Corporation (PDC) today to purchase a 20 acres piece of land in Batu Kawan for RM30 million for the new manufacturing facility.

“This will be a major boost to Penang’s supply chain and skill development efforts,” Lim said at the ceremony during the signing of the agreement.

Jabil Circuit currently has over 800,000 sq ft of manufacturing floor space, three manufacturing, two shared services sites and about 5,200 employees in Penang.

It had invested more than US$250 million (RM897 million) in engineering services, equipment and infrastructure here.

Lim also said Jabil’s expansion in the Batu Kawan Industrial Park is timely as other MNCs such as BOSE, Sandisk and Seagag also bought plots there.

“The new site will focus on manufacturing products for enterprise, industrial, medical and aerospace sectors as well as house Jabil’s global shared services and innovative engineering teams,” he added.

Jabil Circuit Singapore Pte Ltd operations, electronic manufacturing services senior vice president Ong Kay Chong said the site is an ideal place for the company to set up its second hi-tech facility in Penang.

Jabil currently has one facility in Bayan Lepas and another one in Sungai Petani, Kedah.

Ong cited the company’s confidence with the strength of the electronics and electrical (E&E) industry as one of the reasons for the expansion.

He pointed out that Jabil manufactured about US$1.5billion (RM5.38billion) worth of products annually, which is a positive sign for the industry and its market share.