Proton Links Up With Major Thai Auto Parts Firm


 
Thailand’s largest auto parts company, Aapico, said it will pump RM100 million into the joint venture. (Facebook pic)SUBANG JAYA: Proton is working with Thailand’s largest auto parts company, Aapico, in a deal worth RM140 million, the companies said in a joint statement.
Aapico will be responsible for producing Proton dies, jigs, hot stamping parts, assembled parts and chassis components.
The Thai company will acquire 60% of Proton subsidiary AVEE Global, with Proton retaining 40%, and the company will be renamed Aapico Avee Sdn Bhd.
Aapico will make an initial investment of RM40 million in AVEE Global’s 8 hectare (20-acre) facility with plans for further expansion to cater to the growing demand for Proton vehicles.
The partnership, formalised on June 26, will lead to RM100 million in investment planned for 2024, for plant extensions and new machinery.
Proton chairman Syed Faisal Albar said strategic partnerships had also been formed “with technology players as well as with suppliers and regional vendors”.
Proton CEO Li Chunrong said the joint venture will further strengthen the company’s aim of becoming a major regional player and help Proton improve its cost optimisation, efficiency and production quality.
Aapico’s president and CEO Yeap Swee Chuan said the company, by delivering world-class parts for Proton, would also support Proton’s expansion plans.
The partnership with Proton is Aapico’s second venture with a Malaysian company. Earlier this year, it signed a RM30 million joint venture with exhaust supplier Purem. - FMT


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