Aapico to invest RM140mil to produce car components with Proton
03 Jul 2023
Thailand’s largest auto parts maker, Aapico Hitech PLC has partnered with Proton Holdings Bhd to produce car components in Malaysia.
The partnership will see Aapico acquiring 60 per cent of Advance Vehicle Engineering Global Sdn Bhd’s (AVEE Global) shares from Proton, as the national carmaker retains a 40 per cent stake in the company that will be renamed Aapico Avee Sdn Bhd.
AVEE Global produces dies, jigs, hot stamping parts, body assembled parts and chassis components with Proton.
The partnership, which was formalised on June 26, 2023, will see Aapico making an initial investment of RM40 million into AVEE Global’s 8.09-hectare facility in Tanjung Malim, with plans for further expansion to cater to the growing demand for Proton vehicles and the overall automotive sector.
Another RM100 million in investment is planned for 2024, for plant extension and the acquisition of new machinery.
Aapico president and chief executive officer Yeap Swee Chuan said the company is entering the auto parts manufacturing sector in Malaysia at the right time, with promising growth expected in the automotive industry led by strong demand for Proton vehicles.
“We aim to bring our expertise and manufacturing technology into the partnership and deliver world-class auto parts to Proton and support their expansion plans in both the domestic and export market,” he said in his speech at the Proton-Aapico joint venture announcement, here today.
Also present was Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Speaking to the media after the announcement, Proton chief executive officer Dr Li Chunrong said the joint venture with Aapico will benefit Proton by helping to provide the company with better cost optimisation, efficiency, and quality in automobile production.
“As our volume increases in tandem with our model introduction plans, we will continue to work to ensure our products are on par with the competition in terms of features and quality while continuing to offer outstanding safety from the use of technologies such as hot press forming,” he said.
The strategic partnership is Aapico’s second venture in Malaysia’s auto parts sector. Earlier this year, the Thai company signed a joint venture agreement with Purem, one of the world’s largest exhaust system suppliers.
With an initial investment of RM30 million, Aapico holds 49 per cent ownership while Purem holds 51 per cent of Purem Aapico Sdn Bhd, which will begin supplying to Proton in the third quarter of this year.
Prior to this, Aapico’s presence in Malaysia was through the company’s car dealership business where it owns and operates six car dealerships in Malaysia, including four Proton dealerships.
Source: Bernama
