Thursday 28 Mar 2024
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KUALA LUMPUR (May 7): Tan Chong Motor Holdings Bhd plans to set up an automotive hub in Bagan Datuk, Perak, with an estimated long-term investment of RM500 million, to cater to the expansion needs of the local and export markets.

The new auto hub, Tan Chong Automotive & Commercial Vehicle Hub, will be located on a 338-acre freehold land in Bagan Datuk.

According to a filling to Bursa Malaysia, the first phase of the project will require the group to spend about RM100 million for land acquisition and the construction of a bus and truck plant. Once completed, the new plant will cater to the production expansion needs of the local and export markets.

The group said it continues to explore potential markets in the region, including Thailand, Sri Lanka, Vietnam and Indonesia, adding to its existing exported market. It currently exports buses to Singapore, Hong Kong and Myanmar.

Tan Chong currently operates two automotive assembly plants locally, in Segambut, Kuala Lumpur and Serendah, Selangor. Meanwhile, it also has two assembly plants overseas, in Vietnam and Myamar.

The group also said the upcoming hub is not just an automotive hub, but also a strategic business plan that demonstrates the group's commitment towards Malaysia's Industrialisation and economic growth.

"Spin-offs from this investment will include the creation of new jobs, the influx of new pertinent investments and the spurring of Bagan Datuk's economic growth. It is also expected to strategically tap into the growth regions of the North Corridor Economic Region (NCER)," the filling added.

Tan Chong closed unchanged at RM1.64, giving it a market capitalisation of RM1.07 billion.

 

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