The collaboration between Dongfeng and Kim Teck Cheong (KTC) Consolidated Bhd was discussed in a video conference between Dongfeng executives and a Sabah delegation in Dalian led by deputy chief minister Ewon Benedick.

Ewon said the Sabah government had identified Kota Belud Industrial Park as a potential site for the assembly plant, the Daily Express reported.

“We welcome investments of this nature as they are in line with Sabah’s efforts to strengthen industrial development, logistics and trade activities,” he was quoted as saying.

KTC managing director Dexter Lau said the company had secured RM30 million in orders from Dongfeng as part of the collaboration’s initial phase. He said Dongfeng is targeting a top-three market position in East Malaysia’s commercial vehicle sector within two years.

“Sabah will enter a new phase of industrial development focussed on assembling light trucks and heavy machinery to support business growth and the state’s logistics ecosystem,” he said.

The collaboration is expected to create an estimated 1,000 jobs, and Dongfeng had committed to transferring technology and providing technical training to local workers.