Penang: Driving circular recovery in Southeast Asia
From our Penang Service Center, we support leading global OEMs in extending device lifecycles. With high recovery yields, strict security, and a strong sustainability record, Penang plays a critical role in Reconext’s global recovery network.

The site
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83.9%
Devices given a second life (370k units in 2024)
-
96%+
Average repair yield (99% on DRAM)
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115 tons
Electronics recovered to date
-
100%
Certification audit pass rate
-
12 countries
Served across APAC
Strategic hub in APAC
Penang provides end-to-end ITAD and recovery services with the advantages of a Free Trade Zone location, fast customs clearance, and strong links to Southeast Asia’s major transport corridors. Customers benefit not only from free-trade advantages but also from integrated ERP-backed logistics, giving full visibility from inbound freight through warehousing, refurbishment, and outbound shipment.

A track record of recovery at scale
Penang has become a launchpad for circular recovery in APAC, combining high-yield testing, advanced refurbishment, and ERP-backed logistics under one roof. The site’s capabilities go beyond standard ITAD, with teams reclaiming components that others discard, supporting global customers with consistent quality, and embedding sustainability into every process.
96%+ recovery yields across HDD, SSD, NAND, DRAM, IT assets, and mobile.
Achieved a 100% audit pass rate for certifications, with zero breaches to date.
Supported 10 global customers with secure refurbishment and redeployment programs.
Recovered 9.4 tons of materials (plastics, metals, glass) through responsible processing.
Delivered Level 1–4 PCBA repair, advanced display relamination, and component recertification capabilities, enabling recovery of high-value electronics that most providers scrap.
Maintained leadership continuity with senior staff serving up to 25 years.
Case studies
From in-house bottleneck to two-site Asia coverage in months
A leading NAND OEM was running after-sales logistics in-house, but rapid volume growth made the model unsustainable, and they needed a partner stood up quickly to keep pace. Turnaround times were the primary pain point. Customers needed faster response on SSD and memory device failures. End users required direct support engagement, adding complexity beyond a basic repair-and return operation.
What we did
- Stood up a two-site service loop in months. Suzhou for China coverage, Penang for broader APAC reach
- Deployed OEM-provided testers and tools to ensure OEM-standard diagnostics on every device.
- Acted as an extension of the OEM's own service brand, providing direct end-user support at point of failure.
What happened
- Two-site network operational on the OEM's accelerated timeline. Inbound/outbound flow from day one across Suzhou and Penang.
- 1,500 SSDs and 4,000 memory units processed monthly. Reconext's 15-site network in China absorbs spikes without disruption.
- Customer feedback positive. Program is running and working as designed, with zero service lapses.
~2 months
Standup to operational
1.5K
Processed SSDs/month
4K
Processed Memory/month
Consolidated fragmented 25M+/yr APAC repair program to Reconext
APJ reverse logistics were fragmented across multiple local providers: inconsistent quality, missed recovery opportunities. The OEM needed unified returns, repair, and recertification across diverse markets including China, India, and Japan. The bar: one partner delivering global OEM standards with local APJ efficiency.
What we did
- Anchored APJ returns at a 58,000 sq ft Free Industrial Zone hub in Penang. Duty-free flows, swift customs.
- Delivered end-to-end: NIST SP 800-88 data sanitization, triage, repair, and OEM-grade refurbishment.
- Deployed AI-assisted tooling for BOM validation and cosmetic grading. Uniform quality across all geographies.
What happened
- Program scaled to 5 global sites with Penang anchoring APJ, collectively exceeding $25M in annual revenue.
- Grade A refurbished units delivered with virtually no visible wear. Fully aligned to OEM global outlet criteria.
- Recognized at the OEM's Partner Forum as a key ally for AI- driven lifecycle services and asset recovery.
5
Global sites
25M+
Annual program value
7 days
Intake-to-deploy
58K
ft² Penang capacity
2.2M rare-earth magnets recovered and returned to new drives
APAC reverse logistics were spread across multiple vendors with significant cost and yield inefficiencies. The OEM needed one integrated partner for the full returns loop: inbound RMA, grading, test, repair, and component harvesting. Constraints: Free Trade Zone operations, eliminating process waste, complex cross-border logistics across Asia.
What we did
- Centralized all APAC HDD returns at a 58,000 sq ft FIZ hub in Penang: 6-hour air clearance, C-TPAT Tier III security.
- Delivered the full reverse loop: RMA, NFF screening, repair, refurbishment, and finished-goods fulfilment.
- Harvested rare-earth magnets and other components from beyond- repair drives, feeding a closed-loop circular supply chain.
What happened
- 2.2 million rare-earth magnets reclaimed. Enough recovered material for ~25,000 new drives.
- RMA fulfilment turnaround averaging 2–3 days. NFF units graded, wiped, and back to inventory at speed.
- Penang site running at ~65% utilization with headroom to scale via shifts and existing space and no new builds needed.
3
Days RMA turnaround
2.2M
Magnets reclaimed
6 hrs
Air customs clearance
How we help you win
Make returns painless
Fast, accurate processing for every customer return
Keep parts flowing
Reverse logistics and spare parts managed without the headaches
See what’s still good
Detailed testing and grading that protects resale value
Get orders out the door
From exchanges to bulk shipments
Bring devices back to life
From single parts to full-unit refurbishments
Recover more value
Secure, on-site data wiping and component harvesting
Who we serve and what we handle
Penang supports global OEMs, ITAD providers, and consumer electronics brands across enterprise IT, data storage, mobile, and telecom. The site specializes in high-yield recovery, extending device lifecycles while protecting customer data and value.
Always-on protection for customer assets
Penang maintains strict controls to safeguard customer data and intellectual property. All data-bearing devices are processed in secure, access-controlled zones by authorized staff, with full audit trails. Erasure follows internationally recognized standards, including NIST 800-88, DoD 5220.22-M, and ISO/IEC guidelines, ensuring data is irretrievably destroyed. Devices that cannot be securely wiped are physically dismantled and destroyed before leaving the facility.
People on watch
Badge-controlled access and trained personnel in secure zones.
Eyes everywhere
CCTV monitoring and intrusion detection across critical areas.
Tight access
Documented procedures for handling customer devices and sensitive data.
Data lockdown
Certified secure data wipe compliant with NIST, DoD, and ISO standards.
Environmental responsibility
The Penang team embeds sustainability into every stage of recovery. Devices are refurbished or harvested for parts wherever possible, 83.85% of incoming units gained a second life in 2024 alone. Hazardous materials are managed by certified partners in full compliance with Malaysia’s DOE requirements, while site-wide initiatives such as LED lighting have already reduced electricity consumption by an estimated 35%. The facility operates under ISO 14001 for environmental management, ISO 45001 for health and safety, and R2v3 for responsible recycling, ensuring every process meets the highest global standards.
115+ tons
Of devices recovered (lifetime)
9.4 tons
Of plastics, metals, and glass materials recycled
Morning-shift
Operations further reduce energy demand
A look inside our Penang operations
Find us
Reconext Penang, Malaysia
Situated in Perai Free Industrial Zone, Penang works closely with local authorities (Customs, DOE, MIDA) and leverages Malaysia’s central APAC position for regional efficiency.
- Address
- Plot 452, Tingkat Perusahaan 6
Zon Perdagangan Bebas
Kawasan Perindustrian Perai
13600 Perai
Pulau Pinang, Malaysia. - Phone
- +604-377 9200
- Local time
- Coordinates
- 5.4141° N, 100.3288° E
- Calexico Cross-Dock
- Mexicali Gómez Morín Service Center
- Mexicali Tecnomex Service Center
- Mexico City Service Center
- Reynosa Service Center
- McAllen Cross-Dock
- Grapevine Service Center
- Irving Service Center
- Memphis Service Center
- Toronto, partner facility
- Havant Service Center
- Zoetermeer Service Center
- Prague Service Center
- Bydgoszcz Service Center
- Tallinn R&D Center
- Chennai, partner facility
- Penang Service Center (this site)
- Singapore, partner facility
- Hong Kong Service Center
- Suzhou Service Center
- Tokyo, partner facility
- Sydney, partner facility
Your recovery questions, answered
Does Penang handle customer returns directly?
Yes, the site processes notebooks, mobiles, storage devices, and more for refurbishment, functional restoration, and secure data wipe.
What makes Penang different from other Reconext sites?
It specializes in high-yield storage and component recovery, with dedicated test platforms for HDDs, SSDs, NAND, and DRAM, hitting yields of 92, 99% depending on the device.
How long does it take to process devices?
On average, 29 business days from receipt to outbound shipment.
How secure is my data at Penang?
All data-bearing devices are wiped in line with NIST 800-88, DoD 5220.22-M, and ISO/IEC standards, with full audit trails. The site has never had a data breach and has achieved a 100% audit pass rate.
Does Penang hold global certifications?
Yes, including ISO 9001, ISO 14001, ISO 45001, NIST-certified erasure, R2v3, and ISO/IEC 27001.
What happens to devices that can’t be reused?
Hazardous and non-recoverable components are sorted, managed by a certified DOE- trained officer, and sent to DSV for compliant recycling and disposal.
Want to learn how Penang’s recovery services can extend the life of your IT assets and secure your data?





