Contributed by Kenny Phang.
In collaboration with Defy Media.
Aapico, Thailand’s largest auto parts company, plans to invest RM140 million in a collaboration with PROTON, Malaysia’s national carmaker, to produce automotive components. The partnership, witnessed by MITI Minister, aims to strengthen PROTON’s position as a leading automotive brand in Malaysia. Under the collaboration, Aapico’s subsidiary, AVEE Global, will acquire a 60% stake in PROTON’s subsidiary, which will be renamed Aapico Avee Sdn. Bhd. The initial investment of RM40 million will be made into AVEE Global’s facility, with further expansion and investment of RM100 million planned for 2024
The partnership, which was formalised on 26 June 2023, will see Aapico, one of Thailand’s largest auto parts companies, making an initial investment of RM40 million into AVEE Global’s 20-acre facility 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 extensions and the acquisition of new machinery.
Yeap Swee Chuan, President & CEO of Aapico Hitech Public Company Limited, expressed the company’s excitement about entering the Malaysian auto parts manufacturing sector. Aapico aims to deliver world-class auto parts to PROTON and support their expansion plans in both domestic and export markets.
For PROTON, the JV further strengthens the company’s ambitions to become a major player in the ASEAN automotive market. By leveraging on Aapico’s economies of scale and investment initiatives and combining it with PROTON’s own existing technologies in areas such as hot press forming of body parts, the company hopes to be able to make a quantum leap to power it to the forefront of one of the fastest growing automotive regions in the world.
The Aapico-PROTON 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 largest exhaust systems suppliers globally. With a RM30 million initial investment, Aapico holds 49 per cent ownership while Purem holds 51 per cent of Purem Aapico Sdn Bhd, which will produce exhaust systems and will begin supply to PROTON in Q3 this year.
Yeap added, “We hope that these initial two investments will be the start of our long-term partnership with the national carmaker as we play a small part to support PROTON’s role as a catalyst for developing the country’s automotive ecosystem.”
Prior to this, Aapico’s presence in Malaysia was through the company’s car dealership business where it owns and operates six car dealers in Malaysia including four PROTON dealers.