Business Development Asia LLC
South East Asian Automotive News
ISSUE 2, AUGUST 1997
MALAYSIA
Autoindustries Ventures, an automotive parts manufacturer, is raising US$9m through a rights issue on the KLSE. The proceeds will be used to upgrade its manufacturing facilities, increase automation and expand its downstream operations. It will also increase its stake in Automotive Halla Sdn Bhd, a steering column and universal joints manufacturer from 15% to 40%. The main customers of Autoindustries Ventures' commercial vehicle products are the Ford, Suzuki, and Isuzu assemblers. Another subsidiary, Autokorsia, makes car window regulators and is planning to double its production and develop its export markets. (July 4th, 1997)
Diversified Resources Berhad (DRB), Malaysia's largest automaker has agreed to produce parts for the maker of Indonesia's national car, PT Timor Putra Nasional. Hicom Holdings Bhd, part of the DRB group, will own 50% of the planned auto parts manufacturer, with the remainder held by Thai and Indonesian companies. The manufacturing plant is expected to start operations outside of Jakarta next year. (August 4th, 1997)
KYM Holdings, through its subsidiary Eco Ribuan, has announced that it intends to raise to 32% its stake in second-board listed Juan Kuang (M) Industrial, a manufacturer of auto wiring harnesses, automotive high tension cables and other electrical products. KYM currently owns 4.8% of Juan Kuang and is completing the acquisition of another 17.1% for around RM41m (US$15m). (July 29th, 1997)
Proton's Chairman, Datuk Mohd Saleh Sulong, has said that it is "neither wise nor economical for Proton to pursue a 100% local content policy". Instead, Proton will increasingly source at a regional or global level. Under the AICO trade scheme assemblers are able to source components regionally at a maximum tariff rate of 5%. (July 14th, 1997)
Recaro, the German seat manufacturer, has made Malaysia its South East Asian coordination centre for distribution and sales. Managing Director Mr. Klaus Fricke told reporters that "Malaysia was chosen for our regional office because of its ideal location for overseeing operations. Also, Malaysia has demonstrated sustained economic growth and stability, two factors which are crucial to ensuring the long-term continuity of businesses in the country." Recaro already has a relationship with Proton. (July 4th, 1997)
Toyota is moving from assembly operations to increased on-site component manufacturing, said Toyota director, K. Hasegawaga. His speech was made at the opening of the company's RM12 million (US$4.6m) branch office at the Prai Industrial Estate. Toyota currently manufactures steering systems in Malaysia. (July 1st, 1997)
UMW, the Malaysian assembler of Toyota, Daihatsu and Hino vehicles, is looking to create new strategic alliances, stated Chairman Datuk Rahmat. UMW also manufactures auto components and is pursuing expansion opportunities in countries such as China, the Philippines, Thailand and Vietnam. (June 23rd, 1997)
Recent News: Indonesia, Thailand, Philippines, Singapore, Vietnam, Regional Focus: Making Investment Decisions in ASEAN
Business Development Asia LLC, The Economist Building, 111 West 57th Street, New York, NY 10019
Tel (212) 265 5300 Fax (212) 265 4300 E-mail bdallc@aol.com
A limited liability company incorporated in the State of DelawareHome | Introduction | Services | Skills | Management | Contact | Newsletters