KUALA LUMPUR (March 6): Diversified entity Sime Darby Bhd will invest RM150 million to set up a facility to assemble engines in Malaysia for Germany-based Bayerische Motoren Werke AG (BMW), in order to expand Sime Darby's automotive division.

The Edge Malaysia business and investment weekly (Edge Weekly), quoting a Sime Darby spokesman, reported the investment would be for a new plant in the vicinity of an existing 80-hectare (200-acre) facility at Kedah's Kulim district.

Inokom Corp Sdn Bhd owns the 80ha facility. Sime Darby has a 56% stake in Inokom, while Berjaya Auto Bhd and South Korea's Hyundai Motor Co own 29% and 15% respectively.

The Sime Darby spokesman told Edge Weekly in an email reply: “Yes, Sime Darby Motors (Sdn Bhd) will be assembling three engine models for BMW vehicles at a new facility in the Inokom plant in Kulim."

Sime Darby wholly owns Sime Darby Motors. According to Edge Weekly, Sime Darby Motors is understood to be negotiating with BMW to export the engines, apart from local consumption.

Currently, Sime Darby Motors assembles BMW and Land Rover vehicles at the Inokom plant. Sime Darby’s automotive dealerships include BMW, Jaguar, Land Rover, Porsche, Ford and Hyundai. 

Sime Darby's diversified busineses include oil palm plantation and property development. 

At Bursa Malaysia, Sime Darby shares rose one sen or 0.1% at 11:27am today to RM9.11, for a market value of RM61.89 billion. The stock saw 994,800 shares traded.

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