KUALA LUMPUR (Jan 26): Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has earmarked capital expenditure (capex) of RM1.33 billion for the improvement of its plants and the development of a new model, among others things, according to the carmaker’s president and chief executive officer Datuk Zainal Abidin Ahmad.
During Perodua’s 2022 outlook media conference held on Wednesday (Jan 26), Zainal said that RM529.1 million of the RM1.33 billion capex will go into developing the carmaker’s new models.
“[Perodua’s] capability is actually two minor change (MC) [models] and one full model change (FMC) per year. We will continue with that plan.
“One of the biggest chunks of the [2022] investment is actually new model development, and that is because of the two MC models and one FMC,” he explained.
Meanwhile, Zainal said that RM321.3 million of the carmaker’s 2022 capex will be utilised for the improvement of production capacity of its manufacturing plant — Perodua Global Manufacturing Sdn Bhd (PGMSB).
“If we want to increase [production] capacity, we have to increase takt time (the rate needed to complete a product to meet customer demand). In 2022, we plan to improve the takt time of [PGMSB] to 1.35, compared with [the current] 1.45.
“In comparison, for the old factory (Perodua Manufacturing Sdn Bhd), it currently operates at a takt time of 1.8,” he said.
He added that Perodua's plant improvement plans in 2022 also include carbon-neutral initiatives, such as turning its manufacturing plants into “green factories” towards reducing greenhouse gas emissions.
“This also includes making our factories green factories. We need to convert them and make sure that the factories actually meet the criteria of green factories and eventually later on in the future, we will be able to reduce carbon emissions,” Zainal noted.
He added that a further RM381.3 million will be used for buildings, land and roads, RM49.3 million on research and development enhancement, as well as RM45.6 million on digitalisation.
In comparison, for 2021, the carmaker designated RM1.18 billion for capex, but ended up spending only RM696.3 million.
Listed UMW Holdings Bhd has a 38% stake in Perodua.
At the time of writing on Wednesday, UMW was up one sen at RM2.87, with a market capitalisation of RM3.35 billion.