Malaysia-based Globaltec Formation has formed a partnership with Ningbo Auto Components Industry Association (Ningbo AIA) of China, in order to secure business collaborations in both countries, according to a Bernama report. The alliance was entered into via Globaltec Formation’s wholly-owned subsidiary, AutoV Corporation.

Ningbo AIA is a government body that represents over 200 enterprises from the automotive industry in Ningbo, a major port and industrial hub in east China’s Zhejiang province, according to the news wire report.

The collaboration aimed to merge the Chinese research and development capabilities and financial strength with AutoV’s manufacturing capabilities, qualities and management strengths, said the group executive chairman of Globaltec Datuk Seri Panglima Dr Goh Tian Chuan.

“This will enable AutoV to expand its production capacity as a manufacturer for the Chinese parties and cater for the massive China market. This strategic collaboration will allow the companies to take advantage of the exponential growth of automotive market in the ASEAN region,” he said.

The partnership will see Ningbo AIA provide “full assistance in introducing and promoting (the) AutoV Group” as the ideal partner to its members towards realising the initiatives, which include the localisation of the components and assembly of Ningbo AIA members’ products in Malaysia, along with expanding into the right-hand-drive markets in the ASEAN region, Globaltec added in its filing to Bursa Malaysia.

Both parties are also set to take part in China’s ‘One Belt, One Road’ initiative aimed at strengthening the ties between industry players in China and Malaysia, the report added. This comes as the latest in the Malaysian automotive industry’s ties with China, following the recently-inked Proton-Geely partnership. Last year, the East Coast Rail Link project was also confirmed to be built and financed by China.