BMW and its local partner Sime Darby Motor opened a new engine assembly plant in Malaysia this week to cater for growing regional demand for its vehicles.

The SDAE Engine Assembly Facility – a 8,500 sq m plant built on a six acre plot in the Padang Meha district of Kulim in Kedah state, is operated in partnership with the Malaysian company's Sime Darby Auto Engineering (SDAE) subsidiary and BMW Group Malaysia.

The MYR132m (US$33.6m) factory has an annual capacity of 10,000 engines per year on a single shift and employs 60 workers initially. A second shift can be introduced later if needed to double capacity. 

The facility produces three- and four-cylinder petrol and diesel engines for locally assembled vehicles, including plug-in hybrids, to be sold in Malaysia and exported to other regional markets.

The assembly plant will use engine parts imported mostly from Germany and has EST tightening and Dosing and Bonding Technology (DoboTech) machines olus hydraulic valve play compensation and leak test equipment.

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