Subject: Press Release – NAFCO Breaks Ground on Phase II Malaysia Facility, Accelerating Global Aerospace Expansion and Strengthening Asia-Pacific Manufacturing Strategy
MALAYSIA – January 30, 2026 – NAFCO(TWSE: 3004), an international aerospace fastener manufacturer, today held a groundbreaking ceremony for Phase II expansion of its Malaysia production base (M2 Plant). The ceremony was jointly hosted by Chairman Mr. Francis Tsai and President Mr. Alvin Lin. Distinguished guests included Dr. Yu-Ping Lien, Representative of the Taipei Economic and Cultural Office in Malaysia, a Member of the Negeri Sembilan State Assembly, as well as government representatives, industry partners, senior executives, major customers, suppliers, and employee representatives, all witnessing this significant construction milestone.
NAFCO stated that the launch of Phase II(M2) expansion in Malaysia represents another key milestone in the company’s capacity growth and international manufacturing footprint. The new facility will have a total floor area of 18,252 square meters, with completion scheduled for Q4 2027. Operations are expected to commence in the first half of 2028 upon obtaining the occupancy permit. Upon completion, NAFCO’s total production base area in Malaysia will exceed 27,000 square meters, further enhancing regional supply capabilities and global customer service capacity.
President Mr. Alvin Lin (3rd from left); a Member of the Negeri Sembilan State Assembly, together with government representatives and industry partners, officiating the launch of the Phase II expansion project.
This expansion project is driven by the rapid recovery of global aerospace demand and growing expectations from international customers for supply chain resilience and localized manufacturing capabilities. As global air passenger markets fully recover, next-generation engine platforms accelerate into mass production, and the MRO market continues to expand, NAFCO is actively increasing capacity to meet rising order volumes from the world’s four major aero-engine ecosystems and key customers.
Strengthening Regional Manufacturing Capabilities and Establishing a High-End Aerospace Production Base
The M2 plant will incorporate advanced manufacturing processes and smart manufacturing systems, focusing on high-precision aerospace fasteners and critical components. The new facility will enhance process integration and in-house manufacturing capabilities, strengthen advanced material processing, intelligent production management, and aerospace-grade quality and traceability systems. It will serve as a key overseas production hub and supply node, further improving overall supply flexibility and the company’s ability to serve global customers.
Supporting Long-Term Growth of Global Customers
NAFCO emphasized that the Malaysia Phase II facility represents not only capacity expansion but also a crucial component of its long-term development strategy. Through continued investment in production capacity and technology upgrades, the company is steadily building a multi-site, highly flexible, and highly reliable aerospace supply network to support the growth needs of global OEMs and Tier-1 suppliers over the next decade and beyond.
This investment also demonstrates NAFCO’s commitment to long-term development in Malaysia and collaboration with the local industry. It is expected to create more high-skill employment opportunities and promote the advancement of regional aerospace manufacturing capabilities.
NAFCO is an internationally certified aerospace precision manufacturing company, holding NADCAP accreditation, AS9100 aerospace quality management certification, and IATF 16949 automotive quality management certification. In recent years, the company has continuously upgraded manufacturing technologies and enhanced its capabilities in high value-added aerospace components. To date, more than 9,000 products have been approved by international customers. NAFCO is a qualified supplier recognized by the world’s four major aero-engine manufacturers — GE, Pratt & Whitney (P&W), Rolls-Royce, and Safran Group — providing comprehensive fastener and precision machining solutions.