Auto Parts Holdings Sdn. Bhd. (APM), a subsidy of Malaysia’s largest automotive parts manufacturer (APM Automotive Holdings Berhad) has recently signed a Joint Venture Agreement with Japanese automotive parts manufacturer Delta Kogyo Co., Ltd. (Delta) to manufacture and supply seat components in the ASEAN region.
Under a newly incorporated Malaysian company named APM Delta Seating Systems Sdn. Bhd. (JV Co.), the JV company will see APM owning a majority share of 60 percent while Delta owns the remaining 40 percent.
From the joint venture, a new production plant with a built up area of 12,856 square meter will be erected in Kulim, Kedah. The plant is strategically located within five minutes from Mazda’s CKD plant. This helps in ensuring a good flow of operations between the two plants. The plant is expected to be completed by February 2017.
With over four years of collaboration between APM and Delta, the two automotive parts manufacturer will soon channel their focus to emerging markets in the ASEAN region. JV Co. will be supplying seats, seat frames and components to Mazda’s CKD operations in Malaysia, which may potentially be exported to other markets in the future.