Joint venture company Purem Aapico is a producer of vehicle exhaust systems and will be supplying this component to its first customer in Malaysia – PROTON. It also has plans to expand this partnership both locally and regionally to supply to more automotive marques. This JV marked its official presence in Malaysia with the opening of its first plant here in the Rawang area, commissioned in an efficient 8 months.
The plant is 4,000 square metres in size with an option for further expansion to 7,000 square metres. Established with an investment of about RM50 million, it will be producing exhaust gas aftertreatment systems here, including catalytic converters and manifolds (hot ends) and mufflers and pipes (cold ends) using state-of-the-art machinery. With about 100 employees at the plant, it currently has the capacity to produce 400,000 exhaust components annually. Most of its capacity is currently meant for SUVs though it has a an allocation for a sedan model. The plant is prepared to cater to further volumes for new local customers as well as technical expansion for the coating of catalysts.
“This is an important milestone for our business activities in the ASEAN market,” said Martin Peters, Managing Partner of the Eberspächer Group. “It demonstrates that our products and technologies for clean mobility are well sought and we are delighted to deliver these together with our joint venture partner AAPICO. Just a year after the start of our joint venture activities, this opening is a proof point of its success and an important step to develop the local Malaysian market”. Vehicle exhaust technology is crucial in treating emissions as well as to minimise noise pollution.
Purem Aapico is jointly owned by the Eberspächer (or Eberspaecher) Group and AAPICO Hitech Public Company Limited in a 51:49 split. Purem by Eberspächer is a subsidiary of this Germany-based group and is a global leader in exhaust technologies, holding around 2,000 patents / patent applications, and dedicates about 10% – 12% of its workforce to R&D. The Eberspächer Group has been innovating since 1865 with the first exhaust technology components developed 90 years ago. The group has a global presence in 30 countries and a consolidated revenue of EUR6.4 billion (2022).
“This is our 2nd auto part investment in Malaysia within this year,” said Yeap Swee Chuan, President & CEO of AAPICO Hitech PLC. “AAPICO is confident of the future of the car industry in Malaysia. I am proud to bring Purem by Eberspächer, one of the largest and top exhaust makers in the world, to Malaysia”.
Founded in 1996 by Mr Yeap, AAPICO was listed in the Stock Exchange of Thailand in 2002. Its core business was initially to design, produce and install car assembly jigs and stamping dies, and to manufacture OEM automotive parts. It has since gone on to add the production of chassis frame components, forging parts, machining parts, casting parts, plastic parts and plastic fuel tanks to its portfolio. The group also has presence in Malaysia, China and Portugal, and also operates car dealerships in several markets.
Later this week, Purem by Eberspächer and AAPICO will officiate the Purem Aapico Co Ltd plant in Rayong, Thailand, the joint venture’s 2nd plants in ASEAN. This plant will be producing exhaust systems for Ford pickup trucks. Both the Malaysia and Thailand plants will complement each other as these companies continue to strengthen their presence in the region.