KUALA LUMPUR: Perodua and Daihatsu will invest about RM600 million to build an engine plant in Sendayan, Negri Sembilan.
Construction is expected to begin in September.
The new engine manufacturing company will see Daihatsu holding 51%, while Perodua the remaining 49% with a paid up capital of RM165 million.
Its core businesses include the manufacturing and sale of automotive engines as well as the development, design, manufacturing of engine parts and equipment.
The new engine plant, which will employ an initial 150 new workers, will have a land area of 142,000 sq metres, a plant area of 19,000 sq metres and a production capacity of 140,000 units a year.
"This new investment is part and parcel of our transformation plan to become a globally competitive company in terms of quality, cost and delivery and is an important component to enhance the power train eco-system in the automotive industry," Perodua president and chief executive officer Datuk Aminar Rashid Salleh said.
"In anticipation of intensifying global competition in the future, Daihatsu is working on structural transformation of its local operations in Malaysia, which it has determined as a key base for its overseas business," Daihatsu said in a statement.
This is the second investment Daihatsu has made in Sendayan; the first is the construction of an Electronic Automatic Transmission plant, named Akashi Kikai Industry Malaysia Sdn Bhd, which began operations in March. Perodua has 10% equity in this venture.