(From left) Stecken, Roslan, Aapico executive director Teo Lee Ngo, Yeap, Peters and New Era Sales and Able Motors (Malaysia) general manager Koh Tang Kim signing a complete car exhaust system to mark the opening of the plant today.
RAWANG: Thailand's largest auto parts manufacturer Aapico Hitech Public Company Limited and German vehicle exhaust specialist Purem by Eberspaecher today opened their first plant in Malaysia.
The joint venture Purem Aapico plant in Rawang covers 4,000 square metres for the production of exhaust gas aftertreatment systems for passenger cars.
This includes so called hot ends with catalytic converters and manifolds as well as cold ends, which refers to mufflers and pipes.
Featuring highly automated state-of-the-art technology, about 100 employees will work in two shifts to produce and deliver about 400,000 components yearly for four different car models directly to Proton, its first customer.
In the future, further volumes with new local customers are planned as well as technical expansion of the production facility for coating of catalysts.
With the facility’s potential to expand up to 7,000 square metres and operate at full capacity, this venture will contribute to the growth and development of Malaysia’s auto parts industry with the creation of new employment, introduction of leading technologies and upskilling the workforce, while delivering sustainable world-class exhaust systems to OEM manufacturers.
Later this week, the joint venture partners will officially open a second plant in Thailand to serve the Asean market.
The site in Rayong near Pattaya will deliver exhaust systems for a Ford pick-up truck.
Purem Aapico was set up in August 2022. Purem by Eberspaecher holds 51%, while Aapico 49%. The aim of the partnership is to develop the local market and become a major exhaust technology system supplier for the region.
Among those present at the plant opening were Purem by Eberspächer managing partner Martin Peters, its executive vice president Asia Andreas Stecken and Aapico president/CEO Yeap Swee Chuan. Proton was represented by its deputy CEO, Roslan Abdullah.
Yeap told reporters that he was confident the exhaust business would last for decades and was not under any threat from the emergence of pure electric cars (EVs). In Malaysia, he said, fuel was still cheap, resulting in the slow adoption of EVs. He said hybrids and plug-in hybrids still require an exhaust system.
Peters pointed out that over 90% of commercial vehicles in the world would run on the internal combustion-engine for a long time, so the demand for exhaust technology solutions would continue to grow strongly.
Yeap, a Malaysian, founded Aapico in Thailand in 1996. The Thai-listed company comprises three business divisions: OEM auto parts manufacturing business, a car dealership business and a IoT connectivity & mobility business.
Purem by Eberspaecher is a subsidiary of the Eberspaecher Group based in Esslingen near Stuttgart.
Apart from the exhaust technology business, the family-owned group also has its hands in automotive electronics and thermal management for a broad range of vehicle types that include hybrids and battery electric vehicles.
