toyota malaysia new plant

Toyota Motor Corporation has confirmed plans to build a new factory in Malaysia. The new plant will be located in Bukit Raja Industrial Estate, Klang, and will have an initial annual production capacity of 50,000 units a year, which can be expanded with increased demand. Combined with the current factory, Toyota’s Malaysian production volume will be around 90,000 to 100,000 units per annum.

UMW Toyota Motor (UMWT) will invest approximately RM2 billion for this project, a total sum that includes land cost, construction, equipment and engineering support from Thailand and Japan. It is the biggest investment ever by UMWT in the company’s history.

The 670,000 square metres new plant is part of Toyota’s plans to reorganise its production system in Malaysia. The current Assembly Services Sdn Bhd (ASSB) factory will be left to focus on the production of commercial vehicles, while the new plant takes on production of passenger cars, including Energy Efficient Vehicles (EEVs).

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Construction of the new plant, which is 10 km away from the current ASSB plant and near to Port Klang, will start in the second half of this year. Toyota expects production to start in early 2019, the time when the ASSB plant will cease to roll out passenger vehicles.

Toyota says that the new “Simple, Slim and Flexible” plant will be one of its most advanced in the world, the next step in its efforts to create competitive plants using innovative production technologies such as freely extensible lines and compact painting booths; features which will also be introduced in Toyota’s new Mexican plant and new Chinese line.

“This plant is another of our efforts to create new, competitive plants, following the decisions made last year to create a new plant in Mexico and a new line in China, and the opening of two new engine plants this year in Indonesia and Brazil,” said Tatsuro Takami, managing officer at Toyota Motor Corp.

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“In addition to introducing cutting edge production technologies, we will dedicate ourselves to developing the personnel who support the making of ever-better cars. By doing this, we will provide high quality vehicles to Malaysian customers through UMWT,” added Takami, who is in Malaysia for the announcement.

At the press conference, it was revealed that the Vios currently has a localisation rate of 50%, and the company aims to increase this figure with the new plant. The products of the new plant will be for domestic consumption, and Toyota sees growth in the Malaysian auto market in the mid to long term. Additionally, Toyota Boshoku UMW, a joint venture between UMWT and Toyota Boshoku Corporation Japan that supplies seats and and interior components, will also move its production activities to the new plant.