Kraiburg Celebrate 30 Year with MGCC

It says a lot about Malaysia being a preferred investment choice when German companies such as Kraiburg TPE Technology (M) Sdn Bhd chose to put down roots here for its Asia Pacific market.

Outside of Germany, the thermoplastic elastomer leader has two production sites – one in Atlanta, Georgia and the other in Seri Kembangan, Malaysia – with sales offices in South Korea, Shanghai, India and Hong Kong.

Their footprint in Malaysia as the gateway to Asia began in 1996 in Nilai with just three staff members managing a sales office for the Asia-Pacific region. The company’s current office and production site in Seri Kembangan had beginnings in 2007 and kicked off production a year later.

For the uninitiated, TPE is the short form of thermoplastic elastomer, a synthetic form of rubber fashioned from plastic resin. This unique material is used in a myriad of items in our daily lives including cars, stationery such as pens, home entertainment, food packing, personal care such as toothbrushes and shavers, and many others including Lego wheels.

The German company’s materials are also used by electric vehicle (EV) manufacturing giants BYD and Tesla.

“TPE is much easier to process than rubber and it is recyclable,” said Managing Director Hew Hong Yong.

90% of Kraiburg’s production is for export and in Asia, much of this growth can be attributed to China’s rapid transition to EVs and Kraiburg’s high-quality products are sought after, especially for the automotive industry in China.

Last year, Chinese EV manufacturer BYD overtook Tesla as the world’s biggest EV seller which puts into perspective China’s growing influence in the automotive world.

“We made the right choice in Malaysia as a German company,” Hew added.

The last three to four years forced companies to reassess their strategy for survival in unprecedented times for many businesses but as producers of an essential product, Hew said Kraiburg experienced a sales jump during the pandemic but pointed out that the business saw slower demand last year as the market adjusted itself to normalcy.

He credits Malaysia’s business-friendly environment from its established infrastructure to IP rights and lower operational costs compared to other countries making this an advantage.

Asked if Kraiburg intends to venture into new areas of business, Hew said the company wants to expand its reach into the medical field and also focus on sustainability.

“Europe has strong sustainability mandates but in Asia, people are not as ready and there is this ‘wait and see’ mentality,” said Hew.

2024 is already shaping up to be a busy year for the German company.

With Germany’s newly-enacted Supply Chain Due Diligence Act, Kraiburg is working on ESG reporting to achieve a low-carbon future amongst other environmental and social goals.

Kraiburg Malaysia will also open its fourth production line later this year.

The MGCC team recently popped by Kraiburg’s office in Seri Kembangan to congratulate the company on its 30-year membership with the Chamber where Hew was presented with a milestone certificate and a special goodie bag containing Malaysian and German treats.

This article is part of a special series for MGCC members who have been with us for 10, 20 and 30 years.