Daihatsu, Perodua Form Engine-Making JV in Malaysia
The still-unnamed JV’s core businesses include the production and sale of automotive engines as well as the development, design and manufacturing of engine parts and equipment.
Daihatsu will build a 600 million ringgit ($186.7 million) engine plant in Malaysia with an annual capacity of 140,000 units.
Construction of the plant in Sendayan, Negeri Sembilan, 30 miles (48 km) south of Kuala Lumpur, is expected to begin in September this year with operations due to begin in mid-2016.
It will be operated by a new joint-venture company, with Toyota subsidiary Daihatsu holding 51% and local automaker Perodua 49%.
“This new investment is part and parcel of our transformation plan to become a globally competitive company in terms of quality, cost and delivery and is an important component to enhance the powertrain ecosystem in the automotive industry,” Perodua President and CEO Aminar Rashid Salleh says in a statement.
Daihatsu says it is restructuring local operations in Malaysia, which it considers a key base for its overseas business.
“Perodua’s new company engaging in vehicle manufacturing is scheduled to put a new plant into operation in mid-2014,” it says in a statement.
“The entire Daihatsu Group will powerfully push forward with structural transformation concerning manufacturing operations for vehicles, including automatic transmissions and engines, in order to speed up the strengthening of international competitiveness.”
The new, still-unnamed JV will employ about 150 workers in the 204,514-sq.-ft. (19,000-sq.-m) plant. Its core businesses include the production and sale of automotive engines as well as the development, design and manufacturing of engine parts and equipment.
Daihatsu already has an electronic-automatic-transmission plant in Sendayan. It began production in March with Perodua holding a 10% stake.
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