DRB-Hicom has agreed to establish a component production joint venture in Malaysia with China's Jiangsu Xinquan Automotive Trim Co Ltd, according to local reports.
The Malaysian conglomerate's 51% owned subsidiary, Hicom-Teck See Manufacturing Malaysia (HTS), will partner with the Shanghai-listed firm to develop and manufacture automotive instrument panel, floor consoles, door trim and other interior components in Malaysia. HTS is primarily a manufacturer of thermo plastic and thermo setting products.
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A new company will be set up, subject to regulatory approval from the Malaysian and Chinese governments, called Xinquan-Hicom Malaysia. It will be 49% owned by HTS and 51% by Jiangsu Xinquan Automotive Trim and will have a paid up capital of MYR64.4m.
The joint venture will help strengthen DRB-Hicom's R&D and production capabilities, allowing it to win new interior trim contracts with Malaysia's first national car company Proton – which is expected to become increasingly dependent on its Chinese partner Geely for its products.
