Continuing its pursuit of becoming Malaysia’s leading automotive brand, Proton has entered into a strategic collaboration with AAPICO Hitech Public Company Limited (Aapico) through its subsidiary, Advance Vehicle Engineering Global Sdn Bhd (AVEE Global). This collaboration aims to enhance the production of various automotive components such as dies, jigs, hot stamping parts, body assembled parts, and chassis components. Under the agreement, Aapico will acquire a 60% stake in AVEE Global, while Proton will retain a 40% share and the company will be renamed as Aapico Avee Sdn. Bhd.
Officially formalized on June 26, 2023, Aapico will make an initial investment of RM40 million into AVEE Global’s 20-acre facility. This investment is intended to meet the growing demand for Proton vehicles and the overall automotive sector, with plans for further expansion and investments amounting to RM100 million in 2024, including plant extensions and the acquisition of new machinery.
With Aapico’s extensive experience and expertise, the collaboration will bring operational improvements to the manufacturing facility, leading to increased production volume and the introduction of new technology applications for better quality parts, improved production efficiency, and cost-effectiveness. The expansion plans also prioritize the development of human capital, creating more job opportunities and attracting highly skilled talents to Malaysia.
For Proton, this joint venture signifies a significant step towards becoming a key player in the ASEAN automotive market. By leveraging Aapico’s economies of scale, investment initiatives, and combining it with Proton’s existing technologies, particularly in hot press forming of body parts, the company aims to propel itself to the forefront of one of the fastest-growing automotive regions in the world.
This investment aligns with the Ministry’s efforts to foster sustainable economic growth, enhance competitiveness, and create innovative employment opportunities in the manufacturing sector. The automotive industry and its related sectors play a crucial role in contributing to employment and Malaysia’s GDP.
The Aapico-Proton strategic partnership marks Aapico’s second venture in Malaysia’s auto parts sector. Earlier this year, the Thai company signed a joint venture agreement with Purem, a leading global exhaust systems supplier. The collaboration resulted in the establishment of Purem Aapico Sdn Bhd, in which Aapico holds a 49% stake, while Purem holds 51%. This venture focuses on producing exhaust systems and supplying them to Proton starting in Q3 of this year. Prior to these ventures, Aapico had a presence in Malaysia through its ownership and operation of six car dealerships, including four Proton dealers.
