In a filing today, APM said the joint venture is to support Hyundai’s automobile manufacturing plant in Cikarang, Indonesia, which is expected to be fully operational in the second half of 2021.
The plant, the group said, will produce 150,000 units of vehicles a year, half of which would be exported to neighbouring countries in Southeast Asia.
The joint venture is between PT APM Automotive Indonesia and Hyundai Transys Inc, a wholly-owned unit of Hyundai Motor Company.
Hyundai Transys is an automotive parts company that produces automobile powertrains and seats with presence in nine countries.
Under the deal, PT APM will acquire a 50% stake in PT Hyundai Transys Indonesia for RM2.17 million cash.
It will also sell a plot of industrial land located in Cikarang to PT Hyundai Transys for RM22.54 million for the purposes of establishing a manufacturing plant.
Source: The Edge Markets