China’s Great Wall Forming Production JV in Malaysia

China’s Great Wall Motor reportedly is forming a RMB2 billion ($627 million) joint venture to set up a manufacturing base in Malaysia.

The Star newspaper reports the unnamed Malaysian automotive player will be the majority partner in the JV.

Great Wall is China’s largest maker of SUVs and pickups.

Plans for the plant, announced earlier this year, involve the production of energy-efficient vehicles for the ASEAN market. It will have an initial capacity of 80,000 units.

“The production would be for both passenger cars and its range of top-selling pickups,” a source tells The Star.

The newspaper reports the source as saying the JV agreement has been finalized and both parties now are waiting for the International Trade and Industry Ministry to announce the deal.

“The local partner will be involved in the setting up of GWM’s manufacturing plant in Gurun, Kedah,” the source says. “The Chinese also have plans for a research and development center within the plant.”

Great Wall now has a small presence in Malaysia through a collaboration with Green Oranges, a member of the Naza group. Green Oranges is Great Wall’s local franchise holder with a small complete-knocked-down assembly operation for its Haval H5 and Wingle 5 models.

Malaysian Automotive Assn. data shows Great Wall sold 400 units in Malaysia in the first eight months of this year. It delivered 550 units, mostly commercial vehicles, last year, up from 80 in 2011.