EP Manufacturing Signs 10-Year Assembly Contract With BAIC; X55II And BJ40+

EP Manufacturing Berhad (EPMB) has announced the signing of another significant Vehicle Assembly Agreement, this time with BAIC International Development Co. Ltd (BAIC). This strategic partnership to assemble BAIC vehicles in EPMB’s facilities will be valid for 10 years.

Under this agreement, EPMB, through its wholly-owned subsidiary Peps-JV (Melaka) Sdn Bhd, will undertake the assembly and production of BAIC vehicles. This move is a significant step in advancing Malaysia’s automotive industry. The initial models slated for production include the X55ii and BJ40+ SUVs, with a lineup of electric vehicles (EVs) set to debut in 2025.

The agreement will involve BAIC providing crucial technical support, training, and supervision on the assembly and manufacturing process to EPMB’s assembly subsidiary, Peps-JV. While EPMB takes care of vehicle assembly and ensure it meets the set quality and performance standards, BAIC will handle the sales, marketing and branding to build its market presence in Malaysia and ASEAN.

This partnership underscores EPMB’s commitment to innovation and highlights Malaysia’s conducive business environment and skilled workforce. By combining EPMB’s state-of-the-art facilities in Melaka with BAIC’s technologies and expertise, the collaboration aims to deliver high-quality BAIC vehicles in the ASEAN region and beyond.

“I’m happy to note the positive momentum our company is gaining. EPMB is navigating a new agenda with new horizons,” commented Encik Hamidon Bin Abdullah, Executive Chairman of EP Manufacturing Berhad. “The strategic collaborations with OEMs from China signifies our commitment to chart a course towards better profitability for our stakeholders.”

This new development follows on the heels of EPMB’s recent announcement of a new automotive manufacturing facility in Melaka. Once completed, this facility will have the capacity to produce up to 30,000 vehicles annually. This assembly agreement is a follow-up to the Memorandum of Understanding (MoU) signed between EPMB and BAIC International in August 2023.

Brands owned by BAIC include Arcfox, Beijing, Changhe and Foton, among others.