DRB-HICOM Bhd And Geely Sign Agreement To Develop Automotive High-Tech Valley
DRB-HICOM Berhad and Geely have signed a Heads of Agreement (HOA) to reinforce the next phase of collaboration between both companies. The HOA is the intention for both parties to develop the Automotive High-Tech Valley (AHTV) as Malaysia’s next-generation vehicle hub.
The focus of the HOA is the development of an integrated automotive city that will give birth to a hub for a new energy vehicle (NEV) industry. The AHTV will occupy an area of approximately 1,000 acres in Tanjong Malim, Perak and will be expanded accordingly to cater for future needs.
The AHTV hub will cover an extensive automotive and mobility solutions value chain ranging from a full-fledged high technology global research and development centre to a manufacturing cluster and supporting services and ecosystem.
Over the next 10 years, AHTV is expected to attract some RM32 billion worth of investments, including by PROTON. AHTV will also receive direct and indirect benefits from PROTON’s plan to fully relocate its manufacturing facilities to Tanjong Malim by 2026. PROTON currently produces 5 models in AHTV and another 2 models in Shah Alam, Selangor.
The AHTV will also include a research-based university to nurture new talents and development in areas of new and emerging technologies for the industry and the automotive sector in general. It will also house an R&D centre that will provide carmakers with a tropicalised setting to test their vehicles.
The HOA was signed at the Malaysia-China Business Forum by DRB-HICOM Group Managing Director, Dato’ Sri Syed Faisal Albar and Geely Holding Group Chief Executive Officer, Daniel Li Donghui. Among those present were Prime Minister of Malaysia YAB Dato’ Seri Anwar; Minister of Transport, YB Anthony Loke Siew Fook; Minister of Tourism, Arts and Culture, YB Dato’ Sri Tiong King Sing; Minister of International Trade and Industry YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz; Minister of Local Government Development, YB Nga Kor Ming; Minister of Foreign Affairs Dato’ Seri Diraja Dr. Zambry Abd Kadir; Founder and Chairman of Geely Group, Eric Li; as well as DRB-HICOM Chairman, Tan Sri Wan Zulkiflee Wan Ariffin.
With the global trend shifting towards NEV, Geely’s role in the development of AHTV is apt, given the Chinese carmaker’s wide experience in sector. Geely’s flagship brand, Geely Auto, has launched several NEVs, including the intelligent luxury EV brand Zeekr. The company has also invested in a range of battery technologies and has a dedicated new energy division which is focused on developing and producing NEVs. It has also announced plans to launch more than 30 new energy models across its various brands by 2025.
