News

Aug 06, 2023

Aapico, Thailand's largest auto parts maker partners with Proton to invest RM140m in Avee Global (Miyazu)

In Local News, Proton / By Mick Chan / 3 July 2023 4:39 pm / 5 comments Malaysian carmaker Proton has entered into a strategic partnership with Aapico Hitech, the largest auto parts company in

In Local News, Proton / By Mick Chan / 3 July 2023 4:39 pm / 5 comments

Malaysian carmaker Proton has entered into a strategic partnership with Aapico Hitech, the largest auto parts company in Thailand. The collaboration is for Advanced Vehicle Engineering Global (Avee Global) to produce dies, jigs, hot-stamping parts, body assembled parts and chassis components with Proton.

This collaboration will see Aapico acquire 60% of Avee Global from Proton, as the national carmaker retains a 40% stake in the company that will be renamed Aapico Avee Sdn Bhd, according to a statement from Proton. Avee Global previously produced componentry exclusively for Proton, and this joint venture means that the former may now also produce parts for other OEMs.

Formalised on June 26, the partnership will see Aapico make an initial investment of RM40 million into the 20-acre Avee Global facility for further expansion as Proton prepares for growing demand for its vehicles and from the overall automotive sector. This will be followed by a further investment of RM100 million that is planned for 2024, when further plant extensions and the acquisition of new machinery are planned.

Formerly known as Miyazu Malaysia, Avee Global is located in Tanjung Malim where it specialises in the production of automotive components and metal heat-forming, to produce lightweight, durable parts. Avee Global is the leading die provider for Proton cars, and has commenced manufacture of body parts for two new Proton models which are set for commercial production this month.

Avee Global anticipates generating revenue of approximately 600 to 680 million baht (RM79.7 million to RM90.3 million) this year, and it aims to achieve 1.5 billion baht (RM199.2 million) in 2024 through its production of auto parts for the Proton X90 that was launched in May this year.

Prior to this joint venture, Aapico had been present in Malaysia through Proton’s dealership business, where it owned and operated six car dealers throughout Malaysia, including four Proton dealers.

“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. 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 domestic and export markets,” said Aapico Hitech president and CEO Yeap Swee Chuan.

“The joint venture with Aapico will benefit Proton by helping to provide the company better cost optimisation, 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,” said Proton CEO Li Chunrong.

Aapico Hitech is a Tier 1 parts supplier to OEMs based in Thailand including Toyota, Isuzu, Honda, Nissan Ford, Mitsubishi and more, and in 2022 it recorded revenue of RM3.7 billion with a profit RM240 million. Founded in 1996, Aapico began with a core business of designing, producing, and installing car assembly jigs and stamping dies.

The Aapico group today is comprised of 47 subsidiaries and associate companies, of which 14 are located outside Thailand (Malaysia, Singapore, India, China, England, Germany and Portugal), with more than 5,000 employees.

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