RAWANG (Feb 2): T7 Global Bhd will be investing about RM200 million in its metal treatment plant in Serendah over the next three to five years.

The plant, located in the UMW High Value Manufacturing Park and set to cater for the aerospace industry, is expected to be completed by the end of the year, said the group's executive chairman Datuk Seri Nik Norzrul Thani.

"We have received the necessary approvals already so we hope to begin construction soon. With the completion of the construction of this facility by end of the year, it will start contributing to the group's revenue by the first half of FY2019," said Nik Norzrul at the ground breaking ceremony for the plant.

The plant is undertaken by T7 Kilgour Sdn Bhd, a 60:40 joint venture (JV) company between the group's aerospace arm T7 Aero Sdn Bhd and KOV Ltd, a wholly-owned unit of UK-based Kilgour Metal Treatments Ltd.

The RM200 million, to be funded internally by the JV company, covers all land development and training for the new personnel.

"T7 will be bringing in 200 high-skilled staff to man the plant. We hope to prioritise 80% of the roles for Malaysians," said Nik Norzrul.

He added that the plant will be able to bring in up RM180 million per annum in revenue when it runs at full capacity, which is expected to be in the next three to five years.

This new venture represents the group's efforts to expand its revenue stream beyond the oil and gas segment, Nik Norzrul said.

T7 Global shares closed down 2.5 sen or 3.91% at 61.5 sen today, for a market capitalisation of RM257.96million.