Optics Balzers to Develop Site in Malaysia 

The market for optical components is booming worldwide. Optics Balzers therefore consistently implements its international growth strategy and has decided to initiate production in Malaysia as of fall 2016.

Optics Balzers’ CEO Alex Vogt explains that the strategic decision to develop a production site in Malaysia has been deliberated and defined over the last year. “Since 2015, we have been receiving more and more requests concerning large-scale projects, particularly from customers based in Asia,” Vogt says. He believes that there is great potential in Asia and is looking forward to being closer to the customers thanks to the new site. According to Vogt, a separate production site in Asia is one of the key prerequisites for the successful implementation of Optics Balzers’ strategy. Subject to the respective order situation, Optics Balzers is planning to create approx. 200 new jobs in the state of Penang on the west coast of Malaysia.

New site, new products
Vogt emphasizes the role of this plan in moving forward the international growth strategy. He says that the planned production site in Malaysia is the ideal addition to the headquarters in Balzers, Liechtenstein, and to the German plant in Jena. Optics Balzers also considered other Asian locations in China and Taiwan. Malaysia’s good economic and industrial environment as well as the country’s simple administrative and organizational structure have been pivotal for a decision in favor of Malaysia. It was possible to found the new company Optics Balzers Malaysia Sdn.Bhd. within a mere month. According to Vogt, the new site is primarily going to serve as a production site: “This enables us to exploit the market opportunities immediately and helps us to purposefully expand our market shares in Asia with new customer projects and new products.”

Attractive future markets
The company’s focus is going to be on optical solutions for applications in attractive future markets. Vogt gives the example of computer-based applications to aid or enhance human perception of reality (“augmented reality”) and the creation of visual worlds formerly not visible to the eye (“virtual reality”). Another example of the diverse fields of application for Optics Balzers products are mini- or pico-projectors. The demand for these devices is enhanced further by two current mega trends which call for sophisticated optical components: “wearables” – micro computer devices which are worn on the body and assist in everyday activities – and “internet of things (IoT)” – a network of intelligent physical objects which increasingly replace computers. Vogt explains, “Not only do our components help simplify the daily routine – sometimes, development of such new products wouldn’t even be possible without our components.” These product development processes are frequently designed for the production of very large quantities and are highly challenging and customized.

Continued boosts for Balzers and Jena
The product portfolio in Balzers and Jena remains unchanged as relocating production is not part of the international growth strategy. Vogt stresses that the contrary is the case: “Expanding to Asia specifically boosts the development of new products, skills and know-how in Jena and Balzers, where we mainly work on new products until they are ready for series production. This opens up new opportunities for the sites in Europa and facilitates continued positive development. Therefore, the need for new and highly qualified employees is going to keep increasing.”