BAC Launches Construction of US$150 Million Manufacturing Facility in Malaysia

BAC, a global leader in sustainable cooling and heat rejection solutions, has broken ground on a new US$150 million manufacturing facility in Nilai, Negeri Sembilan, reinforcing its long-term commitment to Malaysia and the Asia-Pacific (APAC) region. The investment reflects the company’s strategy to expand its manufacturing footprint while enhancing its ability to serve customers in fast-growing sectors such as data centres, industrial manufacturing and commercial infrastructure.

Developed on an 18.2-acre site, the project will be completed in two phases. The first phase, scheduled for completion by the end of 2027, will feature a 30,000-square-metre manufacturing facility alongside a regional engineering and manufacturing office. The second phase will introduce a dedicated research and development (R&D) centre and advanced manufacturing technologies, with the entire project expected to be fully operational by 2030.

The new facility will manufacture BAC’s range of sustainable cooling solutions, including closed-circuit cooling towers, adiabatic coolers, hybrid cooling systems and liquid cooling technologies. Equipped with advanced automation and manufacturing capabilities, the plant is expected to improve production efficiency, strengthen regional supply chain resilience, shorten delivery lead times and provide enhanced support to customers throughout the APAC market.

A key feature of the Nilai facility is the establishment of BAC’s latest climate-controlled product development and testing laboratory in the region. The centre will allow local engineering teams to design, test and validate cooling technologies specifically suited for tropical climates and high-density applications. By leveraging Malaysia’s skilled workforce, the facility will also strengthen regional engineering expertise while accelerating product innovation in sustainable cooling solutions.

Speaking at the groundbreaking ceremony, Malaysian Investment Development Authority (MIDA) Deputy Chief Executive Officer (Investment Development) Zuaida Abdullah described BAC’s investment as a strong vote of confidence in Malaysia’s advanced manufacturing sector. She said the project supports the country’s ambitions under the New Industrial Master Plan (NIMP) 2030 and the National Energy Transition Roadmap (NETR), while contributing to Malaysia’s goal of achieving net-zero carbon emissions by 2050 through the adoption of energy- and water-efficient technologies.

BAC President Don Fetzer said Malaysia plays a vital role in the company’s long-term global growth strategy, with the new investment strengthening its manufacturing capabilities, innovation efforts and commitment to delivering sustainable cooling solutions worldwide. Meanwhile, Global Vice President and Head of APAC Ted Lim noted that the regional manufacturing hub will bring BAC closer to its customers and partners, enabling faster response times, stronger collaboration and greater support for the region’s rapid industrial and digital infrastructure development.

Beyond manufacturing, the investment is expected to deliver significant economic benefits for Malaysia. BAC plans to create up to 200 high-skilled jobs by 2035, spanning engineering, technical and professional roles, while supporting local suppliers and small and medium-sized enterprises (SMEs). Through partnerships with universities, internship opportunities and employee-focused workplace initiatives, the company also aims to nurture future talent and strengthen Malaysia’s position as a regional hub for advanced manufacturing and innovation.

Designed to meet LEED Gold and FM Approved standards, the facility will incorporate energy-efficient features to reduce greenhouse gas emissions and promote sustainable industrial practices. BAC also plans to continue investing in automation, research and development and advanced manufacturing technologies through 2035, positioning the Nilai facility as its regional manufacturing hub and reinforcing Malaysia’s role in the future of sustainable cooling technology across Asia-Pacific.