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Friday, December 28, 2012

Second plant for Perodua costing RM790mil

Source: http://biz.thestar.com.my/news/story.asp?file=/2012/12/28/business/12510015&sec=business


By EUGENE MAHALINGAM
eugenicz@thestar.com.my


KUALA LUMPUR: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is investing RM790mil to set up a new company with state-of-the-art manufacturing facilities next to its Rawang plant.
Perodua managing director Datuk Aminar Rashid Salleh said the new facility was part of the carmaker's five-year roadmap to remain competitive in light of looming liberalisation.
“In preparation for liberalisation post-2016, Perodua has plans to embark on a structural transformation across its group,” he said at a briefing yesterday. “We need to kick-start immediately. If we don't do anything, our sales will be severely hit.”
Aminar pointed out that with Malaysia gearing up to be an energy-efficient vehicle hub under one of the measures of the revised National Automotive Policy, new potential players coming into the market would mean increased competition for Perodua.
He said the new company would have a paid-up capital of RM200mil and a staff of about 1,200, adding that the yet-to-be-named company would be 51:49 owned by Perodua subsidiary Perodua Auto Corp and Perodua.
Daihatsu Motor Co Ltd has a 20% stake in Perodua.
The new plant would have improved systems, new technology, more automation and be environmental-friendly, he added.
“The Perodua board of directors recently approved this investment and the process of obtaining approval from the respective shareholders is still ongoing,” Aminar said.
He said the new plant would be able to produce 100,000 vehicles a year on a one-shift cycle. The existing plant can produce 200,000 units yearly on two shifts.
“The new plant is expected to start production in 2014,” he said, adding that with the increased production capacity, Perodua hoped to increase its sales in tandem with the yearly total industry volume (TIV) growth.
“We are at 28% market share domestically and it's something we want to protect. We would like to increase our sales in tandem (with TIV growth) and continue to protect our market share,” Aminar said.
He also said that with the new plant in place Perodua was looking to ramp up its export business.
“We are targeting to export 10,000 units this year, with plans to double this to 20,000 units by 2015,” he said.

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