At yesterday’s signing of a strategic partnership between Proton and Aapico Hitech, one of the largest auto parts companies in Thailand, mention was also made of another Aapico collaboration that is entering the Malaysian market, one that is set to supply exhaust emission control systems to Proton.
This will be accomplished via Purem Aapico, a joint venture company set up by German exhaust component supplier Purem International and Aapico Hitech. Both companies inked an agreement to enter into a partnership in Thailand last August, with Purem – which is part of the Eberspacher Group – holding a 51% shareholding interest in the new business, and Aapico the remainder.
The JV aims to manufacture and supply exhaust systems and components for various manufacturers of commercial vehicles and passenger cars in Thailand and also those in the ASEAN market, with production in Thailand being carried out at a new plant being built in Amata City Rayong, about 100 km southeast of Bangkok.
While it was indicated last year that production of exhaust systems for an international automotive manufacturer was planned to begin at the new Thai plant in the third quarter of 2023, the exhaust components for Proton will be made locally by Purem Aapico’s Malaysian business, which was formed earlier this year under the same shareholding structure as that in Thailand.
This was indicated by Aapico Hitech president and CEO Yeap Swee Chuan, who said that the JV has put in an initial investment of RM30 million into its Malaysian business. “The factory is more or less ready. We spent about five months setting it up, and we are already producing exhaust components for Proton,” he said in reply to a question from this publication.
The national automaker won’t be the only customer for Purem Aapico, as it is eyeing supplying other OEMS as well down the line. Its entry into the local market provides manufacturers with an alternative to exhaust systems from French component supplier Faurecia Exhaust International, which has had a similarly-scoped JV with DRB-Hicom (Faurecia Hicom Emissions Control Technologies) in place since 2012.
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