Joint venture to cater to growing Malaysian market
Kuala Lumpur, September 28, 2012 â€“ Hino Motors Ltd, Japanâ€™s leader in the manufacturing of trucks and buses, has entered into a joint-venture agreement with long-time partner, MBM Resources Berhad (MBMR), to established its first manufacturing plant in Malaysia.
Hino Motors Ltd will hold a 58 per cent stake in the joint-venture manufacturing company to be called Hino Motors Manufacturing (Malaysia) Sdn Bhd. The balance will be owned by MBMR.
The Hino manufacturing plant, which will involve an initial investment of RM140 million, will be located on a 42-acre site in Sendayan TechValley, Negeri Sembilan. Construction is scheduled to begin in February 2013 and completed by the beginning of 2014.
The new Sendayan plant, with an annual production capacity of approximately 10,000 units, will manufacture the full range of Hino products comprising small, medium and heavy duty trucks; and buses for the Malaysian market.
Hino Motors Ltd President, Mr Yoshio Shirai, said that the company was delighted to expand its 35-year presence in Malaysia from sales to include full-fledged manufacturing.
â€œThis strategic investment to set up a manufacturing plant here, we expect, will further strengthen our market leadership in the commercial vehicle segment in Malaysia where there is a growing demand for Hino products,â€ he said.
The joint venture with Hino is another boost for MBMRâ€™s automotive manufacturing division and a major step forward in its plans to become one of the leading and most complete automotive groups in Malaysia and the region by 2015.
MBMR Group Managing Director Looi Kok Loon said that the setting up of the manufacturing facility not only marked the beginning of the next level of partnership with Hino but would also contribute to raising the standards of the Malaysian automotive industry.
â€œWhile we are happy to see the natural extension of our partnership, we are even more excited that Hino has decided to make the Sendayan plant a full-fledged manufacturing facility. This means that a lot of world-class manufacturing and quality control processes will be put in place. This can only be good for the local automotive industry,â€ he said.
About Hino Motors Ltd, Japan
Hino is a leading truck and bus manufacturer in Japan. Hino brand trucks and buses, with good quality, durability and reliability, are widely marketed in more than 70 countries/regions around the world. With its predecessor company having been founded in 1910, Hino celebrates its 70th anniversary this year.
About MBM Resources Berhad (MBMR)
MBMR is a diverse automotive group with two core businesses â€“ automotive distribution and retailing; and automotive parts manufacturing. It currently represents some of the biggest international brands in Malaysia, including commercial vehicle brands Daihatsu and Hino; passenger car brands Perodua, Volvo, Volkswagen and Mitsubishi; and sports tuning brands, ABT and Heico Sportiv. It is the leader in every market segment it competes in, with products that range from light, medium and heavy duty trucks and buses to entry-level compact cars and luxury sports utility vehicles. MBMRâ€™s automotive parts manufacturing division currently produces steel wheels, assembles wheel modules, builds bodies for commercial vehicles and manufactures automotive safety equipment such as airbag modules, seat belts, steering wheels, noise and heat reduction materials and insulator parts.