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Daihatsu to establish new engine manufacturing plant in Malaysia

ABR Staff Writer Published 29 May 2014

Japanese car manufacturer Daihatsu Motor has announced plans to establish a new engine manufacturing plant in Sendayan TechValley, Seremban, Negeri Sembilan State, Malaysia.


The new plant will involve a capital of MYR165m ($51.18m), and a capital investment of JPY15bn ($147.21m) for building and equipment.

It will be established by Daihatsu and a local holding company Perusahaan Otomobil Kedua, which will hold 51% and 49% stake respectively. Currently, Daihatsu holds a stake in Perusahaan Otomobil Kedua.

The plant will have a production capacity of 140,000 units per year.

It will be involved in manufacturing and sales of automotive engines as well as development, design, manufacturing and sales of engine production equipment. It will be operational in mid-2016.

While the total land area will be 142,000m², the plant area will be 19,000m².

Daihatsu noted that it is working on structural transformation of local operations in Malaysia, which will be the key base for its overseas business.

The structural transformation will cover manufacturing operations for vehicles, including automatic transmissions and engines, in order to speed up the strengthening of international competitiveness.

Image: Daihatsu Terios. Photo: courtesy of Stahlkocher.

Source: Company Press Release