PETALING JAYA: Auto parts maker EP Manufacturing Bhd (EPMB) has entered into a memorandum of understanding (MoU) with China’s BAIC International Development Co Ltd (BAIC) to work on the local production of its sports utility vehicles (SUVs), namely BJ40P and X55II.
The joint development also involves working on future right-hand drive (RHD) internal combustion engine (ICE) vehicles and electric vehicles (EVs), where the companies will develop BAIC-branded RHD EVs to cater to the Malaysian and other RHD markets in the region.
BAIC is a wholly-owned subsidiary of BAIC Motor Corp Ltd, which is part of Beijing Automotive Group Co Ltd, one of China’s largest carmakers and a Fortune Global 500 company.
In its filing with Bursa Malaysia today, EPMB said it will be responsible for the local assembly of the said SUVs and subsequently the RHD ICE and EV products in the country.
Additionally, EPMB will also be responsible for the localised production of parts for the SUVs, and subsequently RHD EV products in Malaysia.
“This is with intention to gradually increase the proportion of localised parts to obtain policy support from the Malaysian government, and to take advantage of the Asean free trade agreement to realise Asean regionalisation coverage,” EPMB said.
“Additionally, this collaboration is also in line with EPMB’s EV venture and carbon credit ambitions,” it added.
The MoU will allow the partners to leverage on each other’s strengths and expertise and potentially create an additional revenue stream for EPMB as well as contribute positively to the group’s future growth.
At market close today, its shares were 1.5 sen or 1.6% lower at 92 sen, giving the group a market capitalisation of RM203.76 million.