Mercedes-Benz Malaysia reaches 100k units milestone at Pekan assembly plant, RM500m invested to date
The Mercedes-Benz Malaysia (MBM) assembly plant in Pekan, Pahang has reached the 100,000 units milestone. The company says that it is committed to boost the local economy with continuous investment efforts – to date, MBM has invested RM500 million in the facility.
“Mercedes-Benz is the first and only luxury automotive manufacturer to master the local production process in Malaysia. Since its establishment in 2004, the Mercedes-Benz Production Plant in Pekan has played a pivotal role in shaping the Malaysian automotive landscape,” said Amanda Zhang, president and CEO of Mercedes-Benz Cars Malaysia and head of region, Mercedes-Benz Cars SEA II.
“This year’s milestone achievement highlights the plant’s remarkable evolvement and journey, reinforcing our commitment to strengthening our foothold in the luxury car segment,” she added.
The 100k milestone comes after another high point that happened earlier this year. The successful start of local assembly of the EQS 500. Assembling EVs here “accelerates the brand’s electric mobility drive and shapes the future of its automotive manufacturing, as well as the direction of its plant in Malaysia,” the company says, consistent with Mercedes-Benz’s strategy toward ‘electric only’.
Effort is also being put into sustainability at Pekan. Mercedes-Benz’s commitment to sustainability is a fundamental aspect of its business strategy, in line with the United Nations Sustainable Development Goals (UNSDGs). In “Ambition 2039”, the company has set the target of making the fleet of new vehicles net carbon-neutral over the vehicles’ entire life cycle by 2039.
“In alignment with our sustainability vision, we are committed to reducing our carbon footprint by minimizing water and energy consumption while efficiently managing waste. Collaborating with our contract manufacturing partner, Hicom Automotive, we’ve undertaken numerous upgrades at our plant,” said Andreas Lettner, VP of production at MBM.
“These enhancements encompass investments in machinery, capacity expansion and the implementation of various sustainability measures. These measures include energy conservation, reduced raw material consumption through innovative packaging, rainwater utilization and the integration of green energy through photovoltaic panels,” he added.
Mercedes-Benz and its contract manufacturing partner, Hicom Automotive, are working towards a ‘Green Production Target’ for the Pekan plant to ensure that the best practices are adopted in the reduction of energy, water and waste; while increasing the percentage of renewable energy in its production. This includes the aspiration to increase its renewable energy source from the current 30% to 85% by the end of the decade.
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