KUALA LUMPUR (July 28): Globaltec Formation Bhd has teamed up with China's Ningbo Auto Components Industry Association to develop and secure business collaborations between members of both companies.

Globaltec said following a memorandum of understanding (MoU) entered between its wholly-owned subsidiary AutoV Corp Sdn Bhd and Ningbo today, the Chinese group will fully assist as well as introduce and promote AutoV Group as the ideal partner to its members.

The MoU represents an initiative following the recent investment by Chinese automaker Zhejiang Geely Holding Group Co Ltd into national carmaker Proton Holdings Bhd.

In a filing to Bursa Malaysia, Globaltec said Ningbo members are existing suppliers of various reputable carmakers (including Geely) in China, and the MoU will pave the way for them to partner with a reliable Malaysian manufacturer to extend their relationship with Geely in Malaysia and expand into the Asean market.

Initiatives that will require Ningbo's expertise include the localisation of the components and assembly of its members' products in Malaysia, expand AutoV's market to the right-hand drive markets in the Asean region, participate in China's 'One Belt One Road' initiatives to bring closer relationship between industry players in the country with their Malaysian counterparts, and supply of the products manufactured by AutoV in China.

The strategic alliance between Ningbo and AutoV also aims at matching the research and development capabilities and financial strength of Ningbo members with AutoV's manufacturing capabilities, qualities and management strength, Globaltec said.

This, in turn, will enable AutoV to expand its production capacity as manufacturers for the Ningbo members and cater for the massive and rapidly growing automotive market in China, the group said.