Proton Receives RM140 Million Investment From Thai-Based AAPICO
July 3, 2023 Andrew Cheng

Proton’s subsidiary, Advance Vehicle Engineering Global Sdn Bhd, is entering a joint venture (JV) with AAPICO Hitech PCL based in Thailand. AAPICO is set to receive a 60% stake in the former, which will see an investment of RM140 million.

The JV was formalised just last week on 26 June, and Advance Vehicle will change its name to Aapico Avee Sdn Bhd as part of the agreement. AAPICO will also make an initial investment of RM40 million into the facility to produce dies, jigs, hot-stamping parts, body assembled parts, and chassis components with Proton.

This will be followed by an additional investment of RM100 million sometime in 2024 for plant extensions and acquisition of new machinery. “Bringing its vast experience and expertise, AAPICO will be managing operations and introducing new technology applications to produce better quality parts, improve production and cost efficiency,” according to a joint statement by both parties.

“The joint venture with AAPICO will benefit Proton by helping to provide the company better cost optimisation, efficiency, and quality in the production of our cars,” said the CEO of Proton, Li Chunrong. “As our volume increases in tandem with our model introduction plans, we will continue to work to ensure our products are on par with the competition in terms of features and quality while continuing to offer outstanding safety from the use of technologies such as hot press forming,” he added.