SHAH ALAM (July 3) – Proton Holdings Bhd has unveiled a significant development in its growth strategy with the divestment of a 60% stake in its auto part producing subsidiary. The stake will be acquired by Thailand-listed Aapico Hitech PCL for RM41 million. The partnership sets the stage for both companies to inject fresh capital of up to RM140 million by 2024 to fuel business expansion.
As part of the agreement, the subsidiary, currently known as Advanced Vehicle Engineering Global Sdn Bhd, will be renamed Aapico Avee Sdn Bhd. Aapico Hitech will provide approximately RM40 million in capital infusion to support the expansion of the existing 20-acre plant. The facility specializes in the production of dies, jigs, hot stamping parts, body assembled parts, and chassis components.
Aapico’s founder, president, and CEO, Yeap Swee Chuan, stated that the aggressive expansion plan, driven by Proton’s demands, will be financed on a 60:40 basis. Aapico will contribute 60% of the investment, with Proton providing the remaining 40%. The funds will be allocated towards plant extensions and the acquisition of new machinery, scheduled for 2024.
Under this strategic partnership, Aapico will oversee the operations of Aapico Avee, while leveraging its expertise to introduce new technology applications aimed at enhancing part quality and cost efficiency.
Proton CEO Li Chunrong expressed confidence that the joint venture with Aapico will yield significant benefits for the national car manufacturer, including cost optimization, enhanced efficiency, and improved production quality. Li also emphasized Proton’s commitment to delivering competitive products that excel in features, quality, and safety, with advancements such as hot press forming technology.
The partnership announcement was attended by Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Proton Chairman Tan Sri Syed Faisal Albar, and former Economy Minister Datuk Seri Mustapa Mohamed, who serves as an adviser to Aapico.
Proton, with a 50.1% ownership by DRB-Hicom Bhd, operates in collaboration with Zhejiang Geely Holding Group Co Ltd, which holds the remaining 49.9% stake.
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