China's Great Wall plans RM2bil auto plant in Kedah
PETALING JAYA: Chinese automaker Great
Wall Motor Co Ltd is close to making a
splash in Malaysia with a whopping RM2bil investment to set up a manufacturing
facility in Kedah, reliable sources told StarBiz.
Great Wall, the largest maker
of sport utility vehicle and pick-up trucks in China, is listed on the Hong
Kong Stock Exchange with a market capitalisation of HK$106bil (RM42.6bil).
The sources added that Great
Wall planned to produce energy-efficient vehicles (EEV) for the Asean market at
its Kedah plant, which will have an initial capacity of 80,000 units.
Great Wall's plans for
Malaysia fall under the soon-to-be announced National Automotive Policy revision that, among others,
opens the door for new EEV manufacturers to set up base in Malaysia.
A number of players have expressed interest to foray into Malaysia
under the new policy.
Honda has already committed RM1bil to expand its Malacca facility
to manufacture more EEV vehicles.
Baoding, Hebei-based Great
Wall is in its final stages of discussion with the Malaysian government on its
investment here.
“Proposals have been made,
and meetings with the authorities are done. The announcement is expected to be
made next month, pending the written approval from the International Trade and
Industry Ministry and the Malaysian Investment Development Authority,” said a
source.
Last year, Great Wall
recorded a net profit of 5.7 billion yuan (RM2.85bil), a commendable 62.6%
increase compared to the previous year. It sold 620,000 vehicles in 2012, an
increase of 28.3% compared to 2011, in addition to exporting 96,500 units of
vehicles.
In 2013, the firm expects to
sell 700,000 units and introduce 13 new models, including the Haval H2, Haval
H8, Great Wall C50 2013 and the Wingle 6.
In comparison, Malaysia's total industry volume or TIV, which
measures total new vehicle sales last year, amounted to only 627,753 units.
It is learnt that Great Wall
intends to make Malaysia its manufacturing and supply chain hub for the Asean
market.
The company has made some
inroads into Malaysia since it started selling vehicles here in the third
quarter of 2011.
According to statistics from the Malaysian Automotive Association,
Great Wall sold 173 units of mostly commercial vehicles last year, compared to
87 units in 2011.
Great Wall also currently has a small completely-knocked-down
assembly operation of its Haval H5 and Wingle 5 models
via its local franchise holder, Green
Oranges Sales & Services Sdn Bhd, a Naza family-owned company,
helmed by chief
executive officer SM Mohd Azli SM Nasimuddin.
Last year, Bulgaria opened
its doors to Great Wall for the mass production of cars in the northern city of
Lovech.
With that plant, Great Wall
became the first Chinese automaker to assemble cars in the European Union.
Great Wall also entered into a collaboration with Coda Automotive, a Los
Angeles start-up electric vehicle maker, to co-develop electric vehicles,
slated to hit the market in the second quarter of 2014.
Great Wall will give Coda
access to its vehicle portfolio, while, in turn, Great Wall will get a partner
to provide electric propulsion systems, including battery packs, energy
management systems and drivetrain technology.
Source: The
Star
Date : 20 Feb
2013
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