EPMB Announces New Car Manufacturing Facility in Melaka

KUALA LUMPUR, 20 October 2023 — Main Market-listed EP Manufacturing Berhad (“EPMB” or “Group”) has announced a ground-breaking step in the automotive industry with the initiation of its pioneering automotive manufacturing facility in Melaka. This strategic move is part of EPMB’s commitment to establishing a manufacturing hub for energy-efficient vehicles (“EEVs”) and electric vehicles (“EVs”) in Malaysia, contributing significantly to the global shift towards sustainability.

The establishment of the new facility will unfold in several phases at the HICOM Pegoh Industrial Park, marked by a substantial investment of over RM100 million. This project is poised to create around 1,000 new job opportunities in the state of Melaka, bolstering the state’s growing significance within the regional and global EV industry. Upon completion, the first phase of this new facility will have the capacity to produce up to 30,000 vehicles a year.

Today’s ground-breaking ceremony was witnessed by YAB Datuk Seri Utama Ab Rauf Yusoh, the Chief Minister of Melaka, alongside Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, Senior Executive Director, Investment Policy Advocacy, of the Malaysian Investment Development Authority (MIDA) representing Datuk Wira Arham Abdul Rahman, the Chief Executive Officer of MIDA.

Datuk Wira Arham Abdul Rahman, CEO of MIDA, applauded the company’s latest milestone and said, “Congratulations EPMB and BAIC for the strategic collaboration in shaping the future of sustainable mobility. Such collaboration with BAIC is a testament of their confidence in Malaysia’s attractiveness as an investment destination and underscores the nation’s cutting-edge automotive manufacturing capabilities, with EPMB leading the way. This new manufacturing facility, dedicated to EEVs and EVs, perfectly aligns with the Low Carbon Mobility Blueprint (LCMB), National Automotive Policy (NAP) 2020 and Malaysia’s New Industrial Master Plan 2030 (NIMP 2030) aspirations. These policies are rooted in harnessing opportunities in ESG sensitive markets and swiftly adopting technology to enhance the technological ecosystem of our manufacturing sector and Malaysia’s commitment towards sustainable transportation.”

Mr. Ahmad Razlan Mohamed, Group Chief Executive Officer of EP Manufacturing Berhad, expressed, “We are excited to share news of the initiation of our inaugural automotive manufacturing plant. The establishment of an EV manufacturing facility is a pivotal step in realizing our comprehensive vision of developing a 360° supply chain for Malaysia’s EV market. Collaborating closely with our strategic partner, BAIC, we are poised to construct a cutting-edge EV manufacturing facility in Melaka, heralding the commencement of the next chapter in our growth trajectory. Additionally, we are keenly looking forward to collaborating with GWM, our esteemed customer, in contributing to position Malaysia as a central hub for EV and EEV in the ASEAN region.”

This milestone project for the Group solidifies EPMB’s strategic partnership with BAIC International Development Co Ltd (“BAIC International”), a Fortune Global 500 company and a major player in China’s automotive industry. EPMB signed a Memorandum of Understanding (“MoU”) with BAIC International in August, paving the way for local production of BAIC’s BJ40P and X55II sport utility vehicles (“SUVs”), right-hand drive (“RHD”) internal combustion engine (“ICE”) vehicles, and EVs. EPMB also expects to assemble vehicles for Great Wall Motor Sales Malaysia Sdn. Bhd. (“GWM Malaysia”), a subsidiary of Great Wall Motor Co., Ltd. (“GWM”) at this plant, based on the MoU which
was signed by both parties on October 18, 2023.

EPMB received approval for a Manufacturing License from Malaysia’s Ministry of Investment, Trade, and Industry (MITI) on July 11, 2023 allowing the manufacture and assembly of four-wheel EEVs, EVs, and electric commercial vehicles.

Malaysia has successfully secured RM26.2 billion in approved investments for the EV sector through 59 projects from 2018 to 1H2023. The Government, through MITI and MIDA, is dedicated to facilitating investment opportunities and promoting growth in the EV automotive segment.