SHAH ALAM: Sapura Industrial Bhd (SIB) has inked a deal with Chery Corporate Malaysia Sdn Bhd for the assembly of front and rear axle systems for selected Chery vehicles.
The contract, with an estimated value of RM307mil over 4.5 years, was signed by SIB's wholly owned subsidiary Sapura Machining Corp Sdn Bhd (SMC) and Chery.
The scope covers the assembly of axle systems for Chery's internal combustion engine (ICE), hybrid electric vehicle (HEV) and battery electric vehicle (BEV) platforms, including the Jaecoo J5 and Lepas vehicles.
The project will be undertaken at SIB's new facility in Bukit Beruntung, Selangor.
With more than four decades of experience in the automotive sector, SIB has established strong capabilities in precision machining, suspension systems, automotive assemblies and advanced manufacturing.
SIB managing director Datuk Syed Izuan Syed Kamarulbahrin said, "This represents an important milestone for Sapura Industrial as our first direct engagement with Chery."
"We are pleased to establish a long-term partnership with Chery, supporting its localisation objectives and contributing to the advancement of Malaysia's automotive industry."
The collaboration complements Chery's ongoing investments in local manufacturing capacity and supplier development as it expands its operations across Malaysia and the Asean region.
As one of the fastest-growing automotive brands in Malaysia, Chery continues to strengthen its local industrial footprint, operational excellence and industry partnerships as part of its long-term business strategy.
Chery Corporate Malaysia vice president Cheng Namweng said, "Malaysia plays a key role in Chery's regional expansion ambitions with capable local partners remaining central to our strategy. Our partnership with SIB reflects this commitment and supports our long-term plans in Malaysia."
