EP Manufacturing Bhd (EPMB) is expanding its automotive component business into electric vehicle applications through a joint venture with China’s Hebei Shichang Automotive Parts Co Ltd.
The partnership will develop and localise thermal coolant tanks for new energy vehicles (NEVs), alongside conventional automotive fuel tanks, fuel-system components and related plastic products.
In a Bursa Malaysia filing today, EPMB said its wholly-owned subsidiary Fundwin Sdn Bhd had signed an agreement with Shichang to establish EP Shichang Automotive Systems Sdn Bhd.
The Malaysian venture will have an initial share capital of RM10 million, with Fundwin holding 51% and Shichang’s Hong Kong subsidiary taking the remaining 49%.
Fundwin will initially contribute RM2.5 million to meet the minimum capital requirement for a manufacturing licence.
Shichang’s initial subscription is subject to Chinese regulatory approval for its overseas investment.
The venture will cover research, design, manufacturing, assembly and distribution of automotive components for original equipment manufacturers (OEMs) and the aftermarket.
Its principal markets will be Malaysia and Asean, with provisions to serve other approved export destinations.
Under the 30-year agreement, Fundwin will handle Malaysian operations, financing arrangements and regulatory matters.
Shichang, which is listed on the Beijing Stock Exchange, will provide manufacturing technology, testing expertise, quality control support and technical personnel training.
EPMB is also a contract vehicle assembler, operating a plant in Melaka with manufacturing partnerships involving Chinese brands including GWM, BAIC, MG and Xpeng.
Its assembly operations include the GWM Haval H6 hybrid and WEY G9 plug-in hybrid, while its EV programmes include the MG S5 and Xpeng vehicles.
The Shichang venture adds another component manufacturing business to EPMB’s operations, with potential applications spanning conventional vehicles and electrified models.
