Malaysia’s First High-Automation Ammunition Factory Runs at Full Capacity as Ketech Asia Produces 130 Million Rounds Annually

(DEFENCE SECURITY ASIA) – Since its official inauguration last year, Malaysia’s first high-automation ammunition manufacturing facility owned by Ketech Asia Sdn. Bhd. (Ketech Asia) in Kuala Lipis, Pahang, is now operating at full capacity.

Speaking recently to Defence Security Asia, Ketech Asia Business Development Manager Amer Hafeez said the facility is currently producing up to 130 million rounds of 9mm and 5.56mm ammunition annually for the domestic market.

“We are now running at full capacity, which is a yearly capacity of around 130 million rounds, for a combination of two calibres, 9mm and 5.56mm,” he said, referring to the ammunition plant, which is staffed entirely by 120 local employees.

The annual production capacity of 130 million rounds, he explained, is only sufficient to meet approximately 10 percent of Malaysia’s total domestic ammunition requirement, which is estimated at around one billion rounds per year.

According to Amer, the facility also plans to produce 7.62mm ammunition for machine guns and sniper rifles, a move that would further increase its annual production capacity.

In addition, he noted that there is also potential for the production of 12.7mm calibre ammunition.

The Ketech Asia ammunition plant, he said, is capable of producing between 230 million and 300 million rounds annually to meet customer demand if operated on a three-shift basis, although this is dependent on the availability of raw materials such as black powder, which must be imported from overseas.

Black powder is critical in ammunition production as it functions as the propellant that generates controlled explosive energy to propel the projectile out of the weapon’s barrel at a specified velocity and pressure.

When a weapon’s trigger is pulled, the black powder ignited by the primer burns rapidly and consistently, producing high-pressure gas that converts chemical energy into the projectile’s kinetic energy.

The quality and formulation of black powder determine the stability of internal pressure, which directly affects firing accuracy, muzzle velocity, effective range, as well as the safety of both the weapon and the shooter.

Due to increasingly turbulent international geopolitical conditions driven by the Russia–Ukraine conflict and intensifying great-power rivalry, the supply of raw materials for ammunition manufacturing, including black powder, has become increasingly unstable.

The supply of black powder has become difficult as a result of the Russia–Ukraine conflict, as the large-scale war has absorbed a significant portion of Europe’s explosives and propellant production capacity to meet domestic military requirements and support for Ukraine.

Since the outbreak of the war, many chemical and explosives-producing countries have redirected their production priorities towards national strategic stockpiles, thereby reducing or freezing exports to international markets.

The conflict has also disrupted supply chains for key raw materials such as potassium nitrate, sulphur and high-quality charcoal used in black powder production, due to economic sanctions, logistical restrictions and transportation constraints.

In addition, the surge in global demand for ammunition and propellants—not only from Ukraine but also from NATO countries replenishing their stocks—has created intense competition for limited resources.

In this tense geopolitical environment, black powder producers are more inclined to secure long-term contracts with their own governments or strategic allies, leaving buyers from non-conflict countries such as Malaysia facing longer lead times, higher costs and greater supply uncertainty.

With regard to overseas markets for ammunition produced at the Ketech Asia facility, Amer said that for now the company’s focus remains on the domestic market, despite receiving strong interest from external parties.

“Although external parties have shown strong interest in Ketech Asia’s ammunition products, we are focusing on the domestic market first, before we go for higher calibre ammunition,” Amer said.

He added that the company is also working to gain control over the entire ammunition production ecosystem in order to reduce dependence on external parties, including through domestic production of black powder.

According to him, Ketech Asia is currently collaborating with local public institutions of higher learning to produce black powder derived from oil palm waste, and preliminary tests have been conducted showing potential, although further research and testing are required.

Malaysia’s first high-automation ammunition manufacturing plant owned by Ketech Asia, located in Kuala Lipis, Pahang, was officially inaugurated in February last year by the Sultan of Pahang, Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.

The 100-acre facility marks another significant milestone for Ketech Asia in meeting the requirements of the nation’s defence and security agencies.

During the inauguration ceremony last year, Ketech Asia Chief Executive Officer Mohd Nahar Nasir said that the company’s ammunition plant in Lipis, Pahang, has been under development since 2022.

“The inauguration of this plant not only strengthens our commitment to the development of the national defence industry, but also contributes significantly to local economic growth,” he said.

With more than a decade of experience in the defence industry, Ketech Asia focuses on ammunition production while also providing weapons solutions, accessories and logistics services to its customers.

The facility, which produces various ammunition variants in 9mm, 5.56mm and 7.62mm calibres, is equipped with the latest technology and expertise, enabling the company to manufacture high-quality ammunition products.

Mohd Nahar said Ketech Asia’s mission is to become a leader and icon of ASEAN military technology by 2030.

As a Malaysian defence industry company, he said Ketech Asia also provides a wide range of high-quality firearms, equipment and accessories.

According to him, the high-automation ammunition plant integrates advanced processing capabilities and customised in-house modifications to produce products of the highest quality.

“We are committed to setting benchmarks across various industry segments with high-quality products and services. Ketech Asia will continue to expand its firearms inventory and offer a wide range of equipment and accessories without compromising quality,” he said.

Mohd Nahar said the inauguration of Malaysia’s first high-automation ammunition plant reflects Ketech Asia’s continuous efforts to support national defence through innovative technology and a commitment to sustainable development.

The ammunition manufacturing programme, he said, also contributes indirectly in several ways, including the direct involvement of local talent in manufacturing processes that meet NATO standards through collaboration between Ketech Asia Sdn. Bhd. and Türkiye-based Atesci, involving knowledge and expertise sharing in ammunition manufacturing processes.

“Directly, it enables in-depth training of local talent in the armaments industry, where Malaysia lacks specialised skilled and semi-skilled manpower. At the same time, it will create employment opportunities for local people.”

The operation of this high-capacity ammunition plant is also seen as a critical component of the national defence sovereignty agenda in reducing the risk of strategic supply chain disruptions during regional or global security crises.

Large-scale domestic production capability such as this provides a strategic advantage to the Malaysian Armed Forces and security agencies in maintaining operational readiness without relying entirely on external suppliers.

In the context of an increasingly complex Southeast Asian security environment, the presence of a high-technology domestic ammunition industry facility strengthens Malaysia’s position as a resilient and self-reliant defence industry player.

Ketech Asia’s continued investment in automation, technology transfer and local human capital development also aligns with national aspirations to build a sustainable, export-oriented defence industry ecosystem in the future.

Overall, the successful operation of this facility not only supports short-term tactical requirements but also lays a long-term strategic foundation for Malaysia’s defence industry amid an increasingly uncertain global geopolitical landscape.

This domestic ammunition production initiative also reinforces the country’s strategic stockpiling concept, ensuring continuity of critical supplies during export restrictions or international logistics disruptions.

Minimal dependence on external sources for the production of basic ammunition allows for more flexible and resilient military operational planning in prolonged conflict scenarios.

At the same time, the development of domestic ammunition industry capabilities has the potential to act as a catalyst for the growth of supporting industrial chains, including metallurgy, specialty chemicals and precision engineering.

Ketech Asia’s ability to scale production through a multi-shift system also enables Malaysia to respond rapidly to surges in strategic demand in the future.

In the long term, the existence of this facility lays an important foundation for Malaysia’s aspiration to emerge as a regional defence industry hub capable of meeting domestic needs as well as selected international markets. — DEFENCE SECURITY ASIA