SERENDAH: KYB-UMW Malaysia Sdn Bhd (KYB-UMW) and China's Hubei Henglong Automotive System Group Co Ltd (Hubei Henglong) have entered a strategic partnership to manufacture steering system components.
Marking KYB-UMW’s expansion into advanced steering technologies, the two signed a Memorandum of Understanding (MoU) at the UMW High Value Manufacturing Park in Serendah today.
This includes KYB-UMW’s entry as a local manufacture of Electric Power Steering (EPS) and Manual Steering Gear (MSG) components.
Sime UMW managing director Datuk Mustamir Mohamad said the collaboration opens long-term opportunities for KYB-UMW to move up the automotive value chain and strengthen competitiveness as an automotive systems supplier.
He explains that the partnership for KYB-UMW represents strategic growth in three ways: by diversifying their product portfolio into steering systems, building new technical capabilities to support the evolving requirements of next-generation vehicles including EVs, and laying the groundwork for regional expansion through technology-driven manufacturing.
Eventually, the expectation is that the partnership in due course will transition from assembly operations to deeper localisation and full production capability.
“Working with Hubei Henglong allows us to localise advanced steering technologies and build the foundation for KYB-UMW’s next stage of growth.
"We’ll explore opportunities in both the Original Equipment Manufacturer (OEM) and Replacement Equipment Manufacturer (REM) segments together — beginning in Malaysia, with the potential to expand across the ASEAN region.
"We’re also developing the SP25 site at the UMW High Value Manufacturing Park as part of that journey.
"KYB-UMW’s new state-of-the-art facility which is now under construction and slated to be completed in December and operational by 2026 will house our shock-absorber module assembly line and future EPS system production, representing the next phase of our expansion," said Mustamir.
Hubei Henglong in turn will grant KYB-UMW exclusive rights to represent and market its steering system products in Malaysia.
This comes as part of the agreement to reinforcing KYB-UMW’s role as its strategic local partner.
"That confidence speaks volumes — not only about our technical strength, but also about the trust between our organisations.
"Today’s MoU opens new avenues for deeper cooperation and technology exchange among all three companies — a partnership with regional potential built on shared experience and mutual respect.
"We see this not as a single project, but as part of KYB-UMW continued evolution into a broader, more capable regional manufacturing partner," added Mustamir.
Equally, the partnership with KYB-UMW marks an important step in Hubei Henglong's regional growth strategy according to vice president Ricky Yang.
“By combining Henglong’s expertise in advanced steering technologies with KYB-UMW’s strong local presence and manufacturing capabilities, we are confident in our ability to deliver high-quality, locally produced steering systems to Malaysian and ASEAN markets,” said Yang.
For now the steering system, according to both companies, will be delivered and used by both Proton and Perodua, as the partnership looks to expand its clientele moving forward.
