Sunday, September 09, 2012 6:34 PM
DRB-Hicom unit in JV with German parts maker
KUALA LUMPUR: Hicom Polymers Industry Sdn Bhd (HPI), a wholly-owned subsidiary of DRB-Hicom Bhd, has signed a joint venture (JV) agreement with HBPO GmbH, to design, develop and supply front-end modules (FEM) for vehicle Original Equipment Manufacturers (OEM) in Malaysia.
HPI will have a 60 per cent stake in the joint venture company, Hicom HBPO Sdn Bhd, which will have proposed initial issued and paid-up capital of RM3 million, while HBPO will hold the balance of 40 per cent.
The JV marks another significant milestone for DRB-Hicom towards realising its aspiration to become an automotive industry leader in the region as both parties intend to have this cooperation extended to other ASEAN countries to expand their footing in the region, DRB-Hicom said in a statement on Friday.
It said with this establishment, Hicom HBPO will be able to introduce new modular automotive engineering products to not only the Group's stable of manufactured components but to the other OEMs as well.
"Not only will Hicom HBPO introduce a new range of state-of-the-art automotive engineering products to the industry, the JV will also spearhead the transformation of DRB-Hicom 's component manufacturing companies into a respectable Tier-1 manufacturing and engineering regional manufacturer and supplier with full 'black box' design capabilities," said group managing director of DRB-Hicom Datuk Seri Mohd Khamil Jamil.
In a filing with Bursa Malaysia, DRB-Hicom said the proposed JV will be for a tenure of 10 years with the option to renew for another 10 years.
It said after the JV in Malaysia has been successfully established, HPI and HBPO plans to set up a JV in another Asean country under the name of HBPO-Hicom Limited.
It said HBPO will have a 60 per cent stake in the Asean JV while HPI will hold the balance of 40 per cent.