DRB-Hicom and Zhejiang Geely Holding (Geely) have signed a head-to-head agreement (HOA) to develop the Automotive High Tech Valley (AHTV) into the Malaysian automotive industry hub for the ASEAN region.
First announced with a memorandum of understanding (MOU) in April 2022AHTV will have a full-fledged research and development center as well as a production cluster with supporting services and a related ecosystem.
“The focus of HOA is the development of an integrated automotive city that will create a hub for the new energy vehicle (NEV) industry. AHTV will occupy approximately 1,000 acres and will be expanded accordingly to meet future demand,” DRB-Hicom said in a statement.
Initial Memorandum of Understanding from April 2022 will be available Expires after six months if no definitive agreement has been signed, but DRB-Hicom has indicated through several corporate announcements sent to Bursa on 12 July 2022, 11 October 2022 and 11 January 2020. 2023 that both sides are still negotiating on the issue.
The company also announced the updates provided on the same mentioned date of the Private Memorandum of Understanding with the Perak state government to Determine the right piece of land in Tanjung Malim for AHTV. The latest HOA announced is the confirmation that the AHTV plan will move to the next phase and is signed by DRB-Hicom group chief executive officer Datuk Seri Syed Faisal Albar and Geely chief executive Daniel Li Donghui in North Korea. Sutra on April 1, 2023.
This was made possible in the presence of Prime Minister Datuk Seri Anwar Ibrahim during his four-day official visit to China, with Geely founder and chairman Eric Li (Li Shufu) and DRB-Hicom chairman Tan. Sri Wan Zulkiflee Wan Ariffin was also present as a witness.
“Over the next 10 years, AHTV is expected to attract a number of investments of RM32 billion, including the national car company Proton. AHTV will also receive direct and indirect benefits from Proton’s plan to completely relocate its production facilities to Tanjong Malim by 2026. Proton currently produces five models in the AHTV and two others. in Shah Alam, Selangor,” said DRB-Hicom.
“AHTV will also include a research-based university to nurture new and evolving talent in new and emerging areas of technology for the industry and the automotive sector at large. It will also feature an R&D center that provides automakers with a tropicalized environment to test their vehicles,” it added.
