SEREMBAN: Perodua and Daihatsu Motor Corporation Ltd of Japan began construction of an engine manufacturing plant at Sendayan TechValley, here, yesterday.
It is part of their business expansion plan in engine, engine components and parts sales.
Expected to be operational in the second half of 2016, the RM600 million plant can produce 140,000 units of various engine capacities on a two-shift cycle per annum.
“This occasion is 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 in Asean.
“This new plant will be officially named later and will be 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 parts localisation programme,” said Perodua chairman Tan Sri Asmat Kamaludin.
He said Sendayan TechValley offered the most competitive package in land pricing, incentives and ease in distributing the finished products domestically and regionally.
Asmat said the new engine plant would also be able to supply other original equipment manufacturers with engine parts and components.
“We believe that demand for engine parts and components will largely come from the Asean Economic Community (AEC).”
He said Perodua had embarked on a transformation journey since 2011 that would see the company’s products and services be on par with, or better than, other established automotive brands.
“The transformation initiatives are in the form of production, products, research and development and procurement and customer satisfaction.
“The initial outcome could be seen with the launch of our latest model, the Perodua Axia.”
Meanwhile, Perodua president and chief executive officer Datuk Aminar Rashid Salleh said the AEC offered tremendous upside potential for nearly all sectors, particularly automotive, as labour and goods could move about relatively freely in one of the world’s most dynamic economic zones. Bernama