By FARA AISYAH / Pic By MUHD AMIN NAHARUL

DRB-Hicom Bhd’s 51%-owned indirect subsidiary, Hicom-Teck See Manufacturing Malaysia Sdn Bhd, has entered into a shareholders agreement with Jiangsu Xinquan Automotive Trim Co Ltd of China to form a RM64.4 million joint- venture company (JVCo) in Malaysia to make instrument panels, floor consoles and door trims and related components for vehicles.

The proposed JV will be called Xinquan-Hicom Malaysia Sdn Bhd, with Hicom-Teck See expected to hold a 49% stake and Jiangsu Xinquan the rest.

Hicom-Teck See’s proposed capital contribution in the JVCo is RM31.56 million, while Jiangsu Xinquan will pump in RM32.84 million, an exchange filing by DRB-Hicom yesterday noted.

“Via the participation of Hicom-Teck See in the JVCo, the DRB-Hicom group will be able to continue supporting Proton Holdings Bhd’s business and expansion into the Asean market.

“(The) JVCo is also targeting to penetrate the Asean market with products manufactured using new technology,” DRB-Hicom stated.

The JVCo will have a tenure of 10 years and will be renewed automatically for an additional 10 years, unless both shareholders agree to a non-renewal within one year prior to the date of the 10th anniversary of the establishment date of the JVCo.

Jiangsu Xinquan was set up in 1982 in Jiangsu, China, to make and sell automotive body parts.

Proton has entered into the Chinese market after inking a heads of agreement with Zhejiang Geely Holding Group Co Ltd to set up a JVCo in August last year.

The venture includes the set-up of a production facility in China to assemble vehicles, and the development of a network of dealers to market the Proton range in China.

Geely will also identify a suitable location in China to set up a manufacturing facility.

DRB-Hicom shares closed unchanged at RM1.67 yesterday, giving it a market capitalisation of RM3.23 billion.