Proton teams up with AAPICO for production of automotive components

KUALA LUMPUR: Proton has taken its next strategic move towards achieving its long-term goal of becoming the preeminent automotive brand in Malaysia. The national automaker has teamed up with Thailand’s largest auto parts maker AAPICO Hitech Public Company Limited, via its subsidiary AVEE Global (Advance Vehicle Engineering Global Sdn Bhd). Under the deal, Aapico will acquire a 60% stake in AVEE Global, which will be renamed as Aapico Avee Sdn. Bhd.

Formalised on June 26, 2023, the collaboration will engage in producing dies, jigs, hot stamping parts, body assembled parts and chassis components. 

Aapico will make an initial investment of RM 40 million into the Proton subsidiary’s 20-acre facility. It will be followed by another RM 100 million investment in 2024 for plant extension and the acquisition of new machinery. The production will fulfil the needs of Proton vehicles and the overall automotive sector. 

Additionally, Aapico will bring its vast experience and expertise. It will manage operations and introduce new technology applications for manufacturing better products, improving production, and optimising costs.

Proton-AAPICO JV will also see the development of human capital, with more jobs being created and attracting highly skilled talents to the country.

The Proton-AAPICO joint venture announcement was made by Tan Sri Syed Faisal Albar, Chairman of PROTON and Yeap Swee Chuan, President & CEO of Aapico Hitech Public Company Limited. The event was graced by the presence of YB Senator Tengku Datuk Seri Utama Zafrul bin Tengku Abdul Aziz, Minister of Investment, Trade and Industry, Dr Li Chunrong, CEO of PROTON, and Roslan Abdullah, Deputy CEO of PROTON.

Upon making this deal, Yeap Swee Chuan, “Aapico is taking the opportunity to enter the auto parts manufacturing sector in Malaysia at this right time, with promising growth expected in the automotive industry led by strong demand for PROTON vehicles and further supported by strong economic growth. We aim to bring our expertise and manufacturing technology into the partnership and deliver world class auto parts to PROTON and support their expansion plans in both the domestic and export market.”

This deal marks Aapico's second venture in Malaysia’s auto parts sector as the Thai firm signed a joint venture agreement with Purem earlier this year. Purem is one of the largest exhaust systems suppliers globally. 

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