EP Manufacturing teams up with BAIC Motor to assemble vehicles in Malaysia

EP Manufacturing Bhd (EPMB) has formed a partnership with China-based BAIC Motor Corporation Ltd to assemble and manufacture BAIC’s authorized model vehicles in Malaysia. 

The auto parts maker’s wholly-owned subsidiary, PEPS-JV (Melaka) Sdn Bhd (PJVM), recently finalised an agreement with BAIC, a subsidiary of Beijing Automotive Group Co Ltd, one of China’s largest carmakers and a Fortune Global 500 company.

Under the terms of the 10-year agreement, PJVM will be responsible for assembling and manufacturing the vehicles in Malaysia, with a targeted capacity of at least 5,000 vehicles per year by September 1, ramping up to 10,000 vehicles annually by March 1 of the following year. 

PJVM will also handle the procurement of all necessary devices, equipment, permits, or approvals for vehicle assembly and manufacturing.

In return, BAIC will authorise PJVM for assembly and manufacturing, provide technical support and training, and oversee the assembly process. 

This agreement supersedes a memorandum of understanding signed in August last year, focusing on developing BAIC’s BJ40P and X55II sport utility vehicles and right-hand drive electric vehicles for Malaysia and other Southeast Asian markets.

EPMB views this collaboration as an opportunity to vertically integrate its operations and tap into the growing automotive market, thereby enhancing its income streams and financial stability. 

“The strategic collaborations with original equipment manufacturers from China signify our commitment to charting a course towards better profitability for our stakeholders,” added EPMB executive chairman Hamidon Abdullah in a statement.

In line with this partnership, EPMB previously announced an investment of over RM100 million to construct an automotive manufacturing plant in Melaka for BAIC and Great Wall Motor vehicles. 

Located at the Hicom Pegoh Industrial Park in Alor Gajah, the facility is expected to create around 1,000 new jobs upon full operation and initially produce up to 30,000 vehicles annually. –TMR