When South Korea’s SK Group sought to expand its copper foil production, Kota Kinabalu in Malaysia emerged as an unexpected but strategic choice. Facilitated by the Malaysian Investment Development Authority (Mida), the SK Group partnered with Sabah’s government to establish SK Nexilis, the world’s largest copper foil factory, at the Kota Kinabalu Industrial Park.
SK Nexilis began operations last May, with a production capacity of up to 57,000 tonnes of copper foil annually. Boo Jae-cheol, the strategy and planning manager at SK Nexilis, noted that production has already commenced, with shipments to clients for auditing. The factory is expected to be fully operational by September or October.
In October, SK Nexilis made its first export of 80 tonnes of copper foil, valued at RM1.9 million, to North America. Once the factory reaches full capacity, it is projected to contribute approximately RM3 billion to Sabah’s gross domestic product (GDP).
The Sabah facility is situated on a 100-acre site, adjacent to China’s Kibing solar plant, aligning with SK Nexilis’s green energy initiatives. Key factors influencing the investment included the availability of cleared land, English-speaking labor, favorable terms like lower electricity tariffs, and corporate tax exemptions. Boo emphasized the strong commitment and investor-friendly policies of the Sabah government as crucial incentives.
The RM2.3 billion plant is expected to become the largest power consumer in the state, using about 70MW of power and incurring a power bill of up to RM122 million annually. This will result in a 10% sales increase for Sabah Electricity Sdn Bhd. SK Nexilis has committed to hiring 95% of its 350-member workforce from Malaysia, primarily Sabahans, with key management roles held by South Koreans. To bridge cultural and language gaps, local staff have been sent to Korea for cultural exchanges and language training.
The Sabah plant will produce the world’s longest, thinnest, and widest copper foil, exclusively for electric vehicles (EVs). As the demand for copper foil grows with the rise of EVs, SK Nexilis plans further expansion with a second overseas plant in Stalowa Wola, Poland, aimed at catering to the European market. The company’s current 22% market share in copper foil is set to grow as global demand increases.
Boo stated that the Sabah plant will enhance cost-effectiveness, while the Polish plant’s strategic location will bolster competitiveness in the European market. SK Nexilis anticipates attracting more investments from Korea, including subsidiaries and complementary industries, to optimize raw material processing capabilities. 
