Eppendorf leases 11.82-acre Bandar Cassia site for first Southeast Asian plant

PETALING JAYA (Sept 2): German life sciences company Eppendorf SE has leased an approximately 11.82-acre site at Bandar Cassia Technology Park (BCTP) in Batu Kawan, Penang, from Penang Development Corporation (PDC) for 60 years to develop its first manufacturing facility in Southeast Asia.

InvestPenang confirmed in a written response to EdgeProp that the site, identified as Plot 340A along Jalan Teknologi 3, is being leased directly to Eppendorf. The lease consideration was not disclosed.

Eppendorf plans to invest about €40 million (approximately RM186 million) in the greenfield facility. Construction is currently expected to begin in the fourth quarter of 2026, with production slated to start gradually in 2028.

Eppendorf has said the plant is projected to employ around 130 people by the end of 2029.

The planned facility will have an estimated built-up area of about 172,200 sq ft (16,000 sq m) and will comprise manufacturing operations, warehousing, offices and supporting functional areas. Appointments of consultants and contractors are still in progress, according to PDC.

Plot 340A identified

The new details provide a clearer picture of Eppendorf's footprint within Bandar Cassia Technology Park.

A site plan supplied by PDC identifies Plot 340A on the eastern side of BCTP, fronting Jalan Teknologi 3. The plot is located alongside sites labelled for MKS Instruments Sdn Bhd and Plexus Manufacturing Sdn Bhd on the plan.

A separate PDC aerial graphic places BCTP within the wider Bandar Cassia development, north of Batu Kawan Industrial Park and near the Sultan Abdul Halim Muadzam Shah Bridge, also known as the Second Penang Bridge.

Bandar Cassia is conceived as an integrated township combining residential, commercial, educational and industrial components, while BCTP forms part of its industrial offering.

PDC said BCTP was planned and developed to attract high-value, technology-driven manufacturing investments that complement Penang's industrial ecosystem.

Why Eppendorf chose Bandar Cassia

PDC cited Penang's manufacturing capabilities, talent base, infrastructure and growth potential among the factors behind Eppendorf's decision to locate in Bandar Cassia.

It said the state's established medical technology and advanced manufacturing ecosystem could support a more efficient ramp-up and reduce execution risk. Penang's strengths in electronics and precision manufacturing also align with Eppendorf's Centrifuges & Instruments portfolio, while its experienced talent pool can support operations to the company's global standards.

PDC also cited BCTP's connectivity, infrastructure and industrial environment as factors supporting the investment.

According to the corporation, Penang recorded RM187 billion in exports of professional, scientific and controlling instruments and apparatus between 2021 and 2025, representing an average 72% of Malaysia's total exports in the category over the period.

Room for future expansion

Plot 340A is being developed with flexibility for future expansion, according to PDC.

The greenfield set-up could accommodate a potential second phase comprising additional production and warehousing capacity, as well as further expansion of office space, if required.

For now, Eppendorf does not expect to manufacture product lines beyond those already announced for the Penang plant — selected centrifuges, mixers and cyclers from its Centrifuges & Instruments portfolio.

The products are used in laboratories for research, diagnostics, development, production and quality assurance.

The company's sourcing approach will initially combine local, regional and global suppliers, depending on material groups and business requirements.

Over time, Eppendorf intends to increase local and regional sourcing where feasible and where it supports quality, resilience and efficiency. The company sees potential to expand sourcing within Southeast Asia as the Penang operation develops and its supplier base evolves.

Eppendorf also intends to develop collaborations with local institutions beyond supplier development.

LEED Gold certification targeted

Sustainability will form part of the facility's design and future operations.

Eppendorf is aiming for LEED Gold certification for the Penang facility, which is being designed in line with recognised green-building standards, supported by a sustainable architectural concept and energy-efficient building systems.

The development adds another technology-driven manufacturer to BCTP and illustrates PDC's strategy of retaining ownership of industrial land while leasing sites to manufacturers establishing operations in Penang.

Once production begins, the facility will also expand Eppendorf's existing Malaysian presence into manufacturing. The Hamburg-headquartered group first established an office in Kuala Lumpur in 1995 and has since developed Malaysia into a regional hub for Southeast Asia.

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