Proton has announced its strategic partnership with Aapico Hitech Public Company Limited (Aapico), Thailand’s largest auto parts company. Costing RM140 million, the investment will see Proton’s subsidiary – Advance Vehicle Engineering Global Sdn Bhd (Avee) producing components such as dies, jigs, hot stamping parts, body assembled parts, and chassis components.
The collaboration between Proton and Aapico will also see Aapico acquiring 60% of Avee Global from Proton, while Proton will retain a 40% share in the company. Avee Global will also be renamed Aapico Avee Sdn Bhd.
The partnership was formalised on June 26, 2023, and will see Aapico making an initial investment of RM40 million into Avee Global’s 20-acre facility. There are also plans for further expansion to cater to Proton vehicles and the overall automotive sector as well in the future. The remaining RM100 million investment, on the other hand, is planned for plant extensions and the acquisition of new machinery in 2024.
The operational manufacturing facility will soon be ramping up its production volume with new products in the pipeline. Aapico will be managing the operations, as well as introducing new technology applications to produce better quality parts and improve production and cost efficiency. The future expansion will also help create more jobs and attract highly skilled talents to the country.
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Prior to this investment, Aapico was invested in the car dealership business in Malaysia. The company owned and operated six car dealers, which included four Proton dealers.
Aapico Hitech Public Company Limited President & CEO, Yeap Swee Chuan said, “Aapico is taking the opportunity to enter the auto parts manufacturing sector in Malaysia at this right time, with promising growth expected in the automotive industry led by strong demand for Proton vehicles and further supported by strong economic growth.”
Yeap added, “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.”
Proton CEO, Dr Li Chunrong said, “The joint venture with Aapico will benefit Proton by helping to provide the company with better cost optimization, efficiency, and quality in the production of our cars. 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.”
The Minister of Investment, Trade and Industry (MITI), YB Senator Tengku Datuk Seri Utama Zafrul bin Tengku Abdul Aziz also graced the partnership announcement event as its guest of honour. Proton says that the investment is in line with MITI’s efforts to generate sustainable economic growth, increase competitiveness, and create innovative and high-skilled employment opportunities in the workforce. This is particularly needed in the manufacturing sector where the automotive industry and related sectors play a significant role in contributing towards employment and to Malaysia’s GDP.
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