Auto Parts Holdings Sdn Bhd (APM), a wholly-owned subsidiary of APM Automotive Holdings Berhad, recently signed a Joint Venture Agreement with Delta Kogyo Co., Ltd. (Delta) to carry out the business of developing, manufacturing, assembling and sale of automobile seating system for automobiles of Mazda Motor Corporation including their Mazda CX-5 and other Mazda models.
This JV agreement between APM and Delta will see a newly incorporated Malaysian company under the proposed name APM Delta Seating Systems Sdn Bhd (JV Co) with an authorized capital of RM25 million divided into 25,000,000 ordinary shares of RM1 each. The issued and paid-up capital of RM23 million will see APM owning 60% and Delta owning 40% of equity interests.
Delta, a Japanese corporation, is one of APM Group’s technical partners in Malaysia for over 4 years. This strategic business agreement will further enhance and strengthen the partnerships of both companies as they will be able to leverage on their combined knowledge and experience to bring greater synergy in their expertise and know-how in the design, development, manufacture, assembly and sales of automotive seats.
In view of the forecasted growth in the automotive sector of up-coming emerging markets in the ASEAN region, the JV Co may supply CKD seats, seat frames and components in the various ASEAN countries by means of export. Additionally, the JV Co will also be supplying components used in the seating systems for Mazda vehicles in Malaysia that may be exported into the ASEAN region as CBU units.
The production plant for this JV will be located in Kulim, Kedah with a builtup area of 12,856 sqm which is estimated to be completed in February 2017. This JV, initiated through a program by Mazda and Malaysia Automotive Institute four years ago, is in support of Malaysia’s Northern Corridor Economic Region direction to boost the economic growth in the Northern Peninsular Malaysia.
