PENANG — TANAKA MEP Refinery Sdn Bhd, a joint venture between Japan-based TANAKA Precious Metal Technologies Co Ltd and Malaysia-based MEP Enviro Technology Sdn Bhd, today broke ground on a RM70 million high-purity precious metal refining facility at Batu Kawan Industrial Park here.
The facility, which is expected to be Malaysia’s first 4N precious metal refining factory, will produce precious metals with a purity of 99.99 per cent, strengthening the country’s capabilities in high-value refining and supporting the electrical and electronics (E&E) and semiconductor industries.
Developed on approximately three acres of land with a built-up area of 45,000 square feet, the facility will initially focus on producing 4N high-purity gold and potassium gold cyanide (PGC), with commercial operations expected to commence in the first quarter of 2029.
The groundbreaking ceremony was officiated by Penang Head of State Tun Ramli Ngah Talib, together with Penang Chief Minister Chow Kon Yeow, and attended by representatives from the state and federal governments, industry and relevant agencies.
Chow said the facility would add another key ecosystem partner to Penang’s established E&E and semiconductor industries.
“Penang is proud to host Malaysia’s first 4N precious metal refining facility, adding another ecosystem partner to our established E&E and semiconductor ecosystem.
“With more than five decades of industrial excellence, Penang has developed an increasingly comprehensive ecosystem spanning design, manufacturing, testing, equipment and supporting companies.
“The presence of TANAKA MEP Refinery contributes to strengthening our industrial capabilities while supporting greater resource recovery and the development of a more sustainable and circular industrial ecosystem in Penang,” he said.
Meanwhile, Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the establishment of the facility would strengthen Malaysia’s capabilities in higher-value precious metal recovery and refining, while supporting downstream industries, particularly E&E and semiconductors.
“More importantly, the partnership demonstrates how investment can contribute to a more integrated and circular manufacturing ecosystem by recovering valuable materials and returning them to the industrial supply chain,” he said.
He said MIDA welcomed investments that deepen Malaysia’s industrial capabilities, introduce higher-value activities and create stronger linkages across the domestic supply chain.
“We will continue to work closely with TANAKA MEP Refinery and our partners in Penang to facilitate the implementation of this project and support its long-term growth in Malaysia,” he added.
MIDA has collaborated with TANAKA MEP Refinery and relevant stakeholders throughout the project development phase and will continue to facilitate the project’s implementation, including connections with Malaysia’s broader manufacturing ecosystem and opportunities for local industry participation in the supply chain.
MEP Enviro Technology director Ong said Phase One of the project, involving an investment of RM35 million, would focus on the production of 4N (99.99 per cent) high-purity gold and PGC, which are widely used in the electronics and semiconductor industries.
“Through this partnership, we aim to establish a more complete precious metal recycling value chain, from recovery and high-purity refining to returning valuable materials back into the manufacturing supply chain,” he said.
TANAKA Precious Metal Technologies chief operating officer Tomoyuki Tada said the facility, upon completion, was expected to strengthen Penang’s capabilities in high-value precious metal recovery and refining while supporting the region’s E&E and semiconductor industries.
Malaysia’s manufacturing sector continues to attract significant quality investments, with RM51.3 billion in approved investments across 973 projects recorded in the first half of 2026, expected to create 64,555 new jobs.
Penang, one of the country’s major investment destinations, recorded RM17.3 billion in approved manufacturing investments during the period, an increase of 38.1 per cent compared with the corresponding period last year.
The facility is expected to further strengthen Penang’s manufacturing ecosystem by introducing high-purity precious metal refining capabilities while contributing to a more circular industrial value chain.
