DRB-Hicom and Zhejiang Geely Holding (Geely) have signed a heads of agreement (HOA) for the development of the Automotive High-Tech Valley (AHTV) into Malaysia’s automotive industry hub for the ASEAN region.
First announced with a memorandum of understanding (MOU) back in April 2022, AHTV will feature a fully-fledged research and development centre as well as a manufacturing cluster that is accompanied by supporting services and an associated ecosystem.
“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. AHTV will occupy an area of approximately 1,000 acres and will be expanded accordingly to cater for future needs,” said DRB-Hicom in a statement.
The initial MOU from April 2022 would have expired after six months if no definitive agreement was signed, but DRB-Hicom indicated via several company announcements filed with Bursa on July 12, 2022, October 11, 2022 and January 11, 2023 that both parties were still engaged in talks on the matter.
The company also provided updates on the same date mentioned of its separate MOU with the Perak state government to identify suitable land in Tanjung Malim for the AHTV. The latest HOA announced is confirmation that the AHTV plan will proceed to the next phase and was signed by DRB-Hicom group managing director Datuk Seri Syed Faisal Albar and Geely’s chief executive officer Daniel Li Donghui in Beijing on April 1, 2023.
This was done in the presence of prime minister Datuk Seri Anwar Ibrahim during his official four-day visit to China, with Geely founder and chairman Eric Li (Li Shufu) and DRB-Hicom chairman Tan Sri Wan Zulkiflee Wan Ariffin also present as witnesses.
“Over the next 10 years, AHTV is expected to attract some RM32 billion worth of investments, including by national car company 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 five models in AHTV and another two models in Shah Alam, Selangor,” DRB-Hicom said.
“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,” it added.
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Automotive High-Tech Valley, also known as Proton City 2.0
Wonder what is Tun’s reaction to this latest cooperation? Will he now say, I was wrong, its the best thing that happened to Proton after the Mitsu collaboration ? Haha
https://paultan.org/2017/05/25/tun-mahathir-saddened-by-proton-geely-deal/
As long as none of his cronies contractor is not involved guess he will just test drive and say its good but then tell us we need to get rid of these foreign companies so his cronies can strive.
I’ve lost track of the number of times Proton has commented something similar to “plan to fully relocate its manufacturing facilities to Tanjong Malim.”
To be fair, the focus over the last 5 years has been turning around. That they have done. I only wish for more local cars apart from the rebadges, which is common. I’d like to see a new Arena and Satria…
“relocate its manufacturing facilities to Tanjong Malim by 2026” if Proton still uses tooling from 2009 for the Exora beyond 2026, e.g. chassis, doors, dashboard, they’ll be moving 17 year old tooling.
And you of course assume that the Exora will be carried over to T Malim? Susah kalau keyboard warrior ni.
AHTV aka assembly plant for RHD asean markets
That land used to bElong to proton. When drb-hicom sold its 49% stake to geely, its only the tanjung malim plant. The rest of proton, including the Shah alam factory and land for proton expansion in tg malim plus lotus were taken out to Drb-hicom.
There’s a report stating that 7 EVs catch fire a day in China. How is the safety of this one?
Bagi link la brader…. sembang aja buat apa.
Googlelah sendiri. PT tak bagi post link.
Good move for proton & malaysia…but 1000 acre consider small…giga texas about 2500 acre…giga mexico even bigger