Boeing and Hexcel celebrated a 40 percent factory expansion of their joint venture Aerospace Composites Malaysia Sdn. Bhd. (ACM) to support increased production by Boeing Commercial Airplanes.

ACM produces flight surfaces for all of Boeing’s commercial programs, including the Next-Generation 737, 747-8, 767, 777 and 787 Dreamliner.

The RM50 million (17 million USD) investment by Boeing and Hexcel adds 125,000 square feet to a factory footprint that now totals 440,000 square feet, and the project includes a clean-room expansion of 11,000 square feet and installation of RM14 million (5 million USD) in new equipment.

With the added capacity, ACM is expected to grow its high-tech manufacturing workforce beyond its current 950 employees, furthering ACM’s position as the region’s leading employer. The added capacity is expected to be partially used to begin production of 787 Fixed Leading Edge Panels in 2014.

“Boeing and Hexcel are increasing ACM’s capacity as a direct result of its proven high performance and ability to expand its capabilities to support the quality, reliability and affordability of Boeing’s commercial aircraft,” said John Byrne, Boeing Commercial Airplanes vice president, Airplane Materials and Structures. “Boeing and Malaysia have a long history of collaboration, and ACM is a great example of the mutual benefit earned by growing Malaysia’s high-tech sector and supporting Boeing’s supply chain.”

“Hexcel is deeply committed to the success of ACM and the Boeing aircraft it supports,” said Russ Thurman, Hexcel Corporation, Director of Operations Americas. “We share in ACM’s continued passion in the advancement of composite aerospace production while expanding on our collective success as the employer of choice for the people of Malaysia”

“ACM are determined to continue to grow ACM business by sourcing locally, creating new local employment especially within this Kubang Pasu district, offering products and helping in the further industrial development of the state of Kedah and the growth of the aerospace industry in Malaysia,” said Robert Moray, General Manager of ACM.

“Boeing recognizes that high-technology aerospace composites manufacturing is a key initiative of the Malaysian Government,” said Skip Boyce, president of Boeing Southeast Asia. “This significant factory expansion represents our confidence in the continued success of ACM and partnership with the Malaysian people.”

At the ceremony, executives also unveiled a new name for the company, Aerospace Composites Malaysia, formerly Asian Composites Manufacturing. Currently owned by Boeing and Hexcel, ACM was formed in 1998 as a joint venture for composites fabrication and minor parts assembly due to the region’s skilled workforce, Malaysia’s role as a long-term Boeing customer and Malaysia’s vision and efforts to become an aerospace hub in Asia.