According to a report by The Star, Berjaya Assets (BAssets) will announce plans for Oriental Assemblers in six months’ time, with BAssets currently in talks with an “Asian automotive brand” to manufacture and assemble cars under its newly-acquired company.
BAssets acquired the entire equity interest in Oriental Assemblers (a subsidiary of Oriental Holdings) for RM32.5mil in cash back in June last year. The company’s principal activities include vehicle assembly, manufacturing and sale of engines and transmission; Chery, Changan, Dongfeng and Hyundai vehicles are among those assembled at its facility in Johor.
The disposal of Oriental Assemblers by Oriental Holdings was done in line with the group’s realigned strategy of streamlining businesses and exiting the automotive assembly operations. The group has stopped investing in the automotive business prior to the 2016 deal, and previously owned sole distributorship of the Honda brand in Malaysia via Kah Motor (subsidiary).
In 2001, distributorship was transferred from Kah Motor to the newly formed DRB Oriental Honda (DOH) in 2001, with Kah Motor being made a dealer. DOH would eventually change its company name to Honda Malaysia later in 2002.
BAseets said the acquisition would enable the group to strengthen its presence in Johor by acquiring the car assembly business together with a piece of 14.74-acre leasehold land.
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