Perodua, Daihatsu Motor start work on engine manufacturing plant


SEREMBAN: Perodua and Daihatsu Motor Corporation Ltd of Japan have begun building the engine manufacturing plant at Sendayan TechValley.

It is part of their business expansion plan in the area of engine, engine components and parts sales.

Expected to be completed and operational in the second half of 2016, the RM600mil plant can produce 140,000 engine units of various capacities, on a two-shift cycle per annum. 

"This occasion is indeed very meaningful for Perodua as it signifies confidence of growth in both domestic and global markets, as well as our commitment in making Malaysia an automotive hub for the Asean region. 

"This new plant will be officially named at a later stage and is our vehicle to ride the expected expansion of the automotive industry, while keeping the cost low to maximise returns. 

"It is also part of our bigger parts localisation programme," Perodua chairman, Tan Sri Asmat Kamaludin said on Monday.

He said the location chosen is also part of this strategy as Sendayan TechValley offered the most competitive package in terms of land pricing, incentives, and ease in distributing the finished products, both domestically and regionally.

He said the creation of a new engine plant will not only fulfil Perodua's needs in the future, but be able at the same time, to supply other Original Equipment Manufacturers (OEM) in the region with engine parts and components. 

"We believe that demand for engine parts and components will largely come from the Asean Economic Community (AEC) which will see a single market within the Southeast Asian region in the very near future," Asmat added.

He said Perodua had embarked on a transformation journey since 2011 and this will see the company's products and services be on par or better than other established automotive brands. 

"The transformation initiatives are in the form of production, products, R&D and procurement and customer satisfaction. The initial outcome of this initiative can be seen with the launch of our latest model, the Perodua Axia, and we will be making several more announcements on this matter over the coming months," he added. 

Meanwhile, PeroduapPresident and chief executive officer Datuk Aminar Rashid Salleh said the AEC offered a tremendous upside potential for nearly all sectors, particularly automotive, as labour and goods can move about relatively freely in one of the world's most dynamic economic zones.

The AEC is an initiative by Asean member countries to achieve economic integration by 2015. It will see member nations having a single market and production base, a highly competitive economic region of equitable development and one fully integrated into the global economy.

In short, the AEC will transform Asean into a region of free movement of goods, services, investment, skilled labour and free flow of capital. - Bernama

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