Aapico, Thailand’s largest auto parts manufacturer, partners with Proton to invest RM140 million in Avee Global (Miyazu)
Malaysian car manufacturer Proton has signed a strategic partnership with Aapico Hitech, Thailand’s largest auto parts company. partnership for Aapico Hitech subsidiary, Advanced Vehicle Engineering Global (Avee Global) to manufacture stamping dies, jigs, hot stamping parts, body assemblies and chassis components with Proton .
According to a statement from Proton, the partnership will help Aapico acquire a 60% stake in Avee Global from Proton, as the national carmaker retains a 40% stake in the company which will be renamed Aapico Ave Sdn Bhd. Avee Global has previously produced components specifically for Proton, and the joint venture means the company can also produce components for other OEMs in the past.
Formalized on June 26, the partnership will see Aapico make an initial RM40 million investment in its 20-acre Avee Global facility for further expansion as Proton prepares for growing demand for their vehicles and from the automotive sector in general. This is followed by a further investment of RM100 million planned for 2024, as factories continue to expand and new machinery purchases are planned.
Formerly known as Miyazu Malaysia, Avee Global is headquartered in Tanjung Malim, which specializes in the production of automotive components and thermoforming of metals, to produce lightweight, durable parts. Avee Global is a leading Proton mold supplier and has begun production of body parts for two new Proton models that will go into commercial production this month.
Avee Global predicts to generate revenue of around 600 to 680 million baht (RM79.7 million to RM90.3 million) this year and aims to reach 1.5 billion baht (199.2 million RM) by 2024 through the production of auto parts for the market. Beads X90 that is Released in May of this year.
Prior to this joint venture, Aapico was present in Malaysia through Proton’s dealership business, where it owned and operated six auto dealerships across Malaysia, including four Proton dealerships.
“Aapico is taking the opportunity to enter the auto parts manufacturing sector in Malaysia at the opportune moment, with promising growth in the auto industry driven by strong demand for Proton vehicles and further supported by strong economic growth. We look forward to bringing our expertise and manufacturing technology into the partnership and supplying world-class automotive parts to Proton, while supporting their expansion plans both in the domestic and international markets. countries and exports,” said Yeap Swee Chuan, president and CEO of Aapico Hitech.
“The joint venture with Aapico will benefit Proton by helping to provide the company with the ability to optimize costs, efficiency and better quality in our automotive manufacturing process. As our volume grows in tandem with our model rollout plans, we will continue to work to ensure our products are on par with our competitors in terms of features and quality, and continue to continues to deliver outstanding safety from the use of technologies such as hot-press forming, said Proton CEO Li Chunrong.
Aapico Hitech is a tier 1 parts supplier to Thailand-based OEMs including Toyota, Isuzu, Honda, Nissan Ford, Mitsubishi, etc and in 2022 the company recorded sales of RM3.7 billion with a profit of RM240 million. Founded in 1996, Aapico started with its core business of designing, manufacturing and installing automotive jigs and dies.
The Aapico Group today consists of 47 subsidiaries and affiliates, of which 14 are located outside Thailand (Malaysia, Singapore, India, China, UK, Germany and Portugal), with more than 5,000 employees. pellets.
