Dialight Europe Ltd has announced to expand the operational activities of LED assembly plant in Penang soon to include moulding and surface mounting technology (SMT) operations.

Moulding operations would start before the end of 2012 for Dialight Penang Sdn Bhd, while SMT activities would begin next year, according to the company’s chief executive Roy Burton .

“Production activities of the plant will also be expanded to include Dialight’s industry-leading LED fixtures for industrial hazardous applications,” he said after the launch of Dialight Penang by Penang Chief Minister Lim Guan Eng.

Burton said US$1mil (RM3.06mil) had been invested in the 40,000-sq-ft facility in Penang with another US$1mil to be invested in the near future.

He said the Penang plant would supply high brightness LED lighting for use in the oil and gas, mining, and the hazardous industrial sectors in Asia.

“This is our first facility in Asia. Malaysia was chosen because of its low labour cost, ease of doing business and the government support.Coming to Penang is in line with our global expansion plans that bring us closer to our customers in Asia.”

Additionally, he pointed out that, “Prior to coming to Penang, we were supplying the Asia market from our plant in Mexico.”

“We will source about 50% of the raw materials used in our LED lighting products from small and medium enterprises in Penang,” he said.

In 2012, Dialight sales of LED lighting products increased more than 128%, Burton said. “This year we expect sales in Asia to grow more than double,” he added. Lim said Malaysia had a 10% world market share for LED, with three of the world’s five largest LED makers located in Penang.