EP Manufacturing, China partner invest RM100mil in Proton fuel tanks plant
KUALA LUMPUR: EP Manufacturing Bhd has partnered with China’s Hebei Shichang Auto Parts Co Ltd to invest RM100 million in a new fuel-tank manufacturing facility to supply Proton Holdings Bhd.
EP Manufacturing has teamed up with China's Hebei Shichang Auto Parts Co Ltd to invest RM100 million in a new fuel-tank manufacturing plant. The facility, set to be constructed at EP Manufacturing's headquarters in Batang Kali, Selangor, will be capable of producing 200,000 plastic fuel tanks each year. Deliveries of these tanks to Proton's Tanjung Malim plant are planned to commence in March of the following year.
This joint venture aligns with Proton's expansion goals and bolsters Malaysia's local automotive component sector, positioning it as a potential regional manufacturing and export hub.
The agreement, signed on October 9, sees EP Manufacturing holding a 51% stake in the venture, EP Shichang Automotive Systems Sdn Bhd, while Hebei Shichang, a Beijing Stock Exchange-listed company, holds the remaining 49%. Hebei Shichang, known for its expertise in plastic fuel-tank systems, has previously supplied major Chinese automotive manufacturers such as Geely, Chery, BYD, SAIC, FAW, Changan, and BAIC.
EP Manufacturing's General Manager of Business Development, Mohd Seth Sulaiman, expressed that this partnership will bolster the group's proficiency in advanced automotive components as it strives for higher-value manufacturing. As a Proton partner for nearly four decades, Mohd Seth highlighted the successful rollout of the Advanced Modular Architecture (AMA) platform and expressed excitement about the joint venture's potential to support Proton's growth, both locally and internationally.
The fuel tanks being manufactured are complex components that necessitate multi-layer construction for meeting stringent safety, pressure, and performance standards. This collaboration will upgrade EP Manufacturing's current fuel-tank production capabilities with technology tailored to meet the requirements of Proton and Geely for both domestic and export markets. Mohd Seth anticipates that this new business could become a significant revenue contributor, akin to EP Manufacturing's automotive seat operations.
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